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Record of open interest in Bitcoin futures: possible growth signals

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The open interest in Bitcoin futures contracts on centralized platforms recently reached an annual peak following the latest price surge, reaching 22.9 billion dollars, marking the highest level since November 2021.

Let’s see all the details below. 

What does the boom in open interest in Bitcoin futures mean?

As anticipated, the open interest for Bitcoin futures traded on centralized platforms has recently reached a new annual peak. 

Specifically marking levels not seen since November 2021 and indicating a significant increase in trading activity around the main cryptocurrency.

According to CoinGlass, on Monday the overall open interest for Bitcoin futures reached $22.9 billion, the highest since the fourth quarter of 2021.

Approaching significantly the peak of about 24 billion dollars reached in that period.

From the first day of 2024, the open interest in Bitcoin futures has grown by over 30%, in line with the surge in Bitcoin prices to $52,300, a 23% increase since the beginning of the year, returning to levels last seen in December 2021.

At the same time, the open interest for Ethereum futures has reached $10.5 billion, marking a 50% increase since the beginning of 2024. The Ether exchange price has reached $2,900, showing a gain of over 27% since the beginning of the year.

We remind you that open interest is a metric that measures the total value of all Bitcoin futures contracts in circulation or “unregulated” on exchange platforms. 

Therefore, it is an indicator of market activity growth and of operators’ sentiment towards a particular asset.

In the last two months, the introduction of spot Bitcoin ETFs by companies like BlackRock and Fidelity has partially influenced market sentiment.

These ETFs have in fact attracted more than 4 billion dollars in inflows in a short period, demonstrating investors’ interest in the broader market of cryptocurrency-based derivatives.

Bitcoin hits a new yearly high at $52,800: is it preparing for another rally?

The price of Bitcoin (BTC) recently reached a new yearly high of $52,800 on February 15, but since then, it has shown a slight decline. 

However, BTC showed a recovery on February 15th, approaching its annual high again. But will it be able to surpass it?

Weekly outlooks reveal an increase in the price of BTC since the beginning of 2023, with a significant boost in October that led to a peak of $49,050 in January 2024. 

Subsequently, the price has experienced a decrease, reaching the $38,500, validating the 0.618 Fib retracement level as resistance. 

Despite a brief dip, Bitcoin has regained ground, generating four weekly bullish candles and closing at $52,900 last week, the highest value since 2021. 

However, the analysis of the weekly RSI shows bearish signals. While the RSI is increasing, it has also created a bearish divergence, often indicative of imminent trend reversals.

Industry experts, such as CryptoMichNL and CrediBULL Crypto, are positive about the future trend of BTC. 

CryptoMichNL predicts that the price of BTC will reach $100,000 before experiencing a decrease, while CrediBULL Crypto suggests a possible retest of $50,000 before further rise. 

However, the analyst warns that, despite the possibility of a $50,000 test, he is still optimistic about the local highs, hoping for the formation of a solid range between the new highs and the green zone.

In conclusion, wave analysis suggests that BTC could reach another high before a correction. 

The most likely level for the peak of this upward movement is estimated at $56,000, determined by the external Fib retracement resistance level of 1.61 of the previous decline. 

This value represents an increase of almost 7% compared to the current price. Subsequently, a correction could occur within the framework of the fourth wave.

 An analysis of the highest level of open interest since November 2021. 

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