Bitcoin may still have “more room to fall” as open interest (OI) has continued to rise amid recent price action, according to crypto analysis platform CoinGlass.

In an Aug. 16 X post, CoinGlass noted that it was “a bit unusual” that open interest has not reacted to Bitcoin (BTC) prices.

“I think there’s a room to fall”

The platform reported that the total OI on Bitcoin futures reached $29 billion on Aug. 16 and has been rising all week, while spot BTC prices have declined 5% in the two days prior.

Open interest refers to the total number of Bitcoin futures contracts that have yet to be settled or expire.

“An increase in open interest means that both long and short positions are increasing,” said the firm.

Rising OI means more leverage in the market, which can amplify movements in either direction.

This happened on Aug. 5 as leverage got flushed out, resulting in BTC dumping 20% in less than a day.

CoinGlass data also indicates that funding rates were negative. Negative funding rates in crypto derivatives markets occur when the price of the contract is trading below the spot price of the underlying asset.

This scenario could discourage traders from holding long positions, as they must pay to maintain these positions and incentivize more short positions.

#Bitcoin #BTC #MarketDownturn #BullRunAhead #BearishRunAhead