Trend Analysis: Bitcoin Futures Open Interest Grows, Price May Correct

In an interview with Decrypt, CEX.IO analyst Illia Otychenko said that “the volume in the Bitcoin futures market has been declining, while the open interest is growing, and the funding rate is at its highest level since June. This can indicate a correction if the momentum is lost." He added that "the market became very sensitive to sharp sentiment changes because the open interest is growing, but the volumes are decreasing. If the leverage goes up while the volume goes down, it might create a cascade effect of liquidations even from a small price move.