Bitcoin’s (BTC) Open Interest (OI) has surged to $27.9 billion after an increase of $3.3 billion, reflecting the growing trend of leveraged trading in the crypto market.
A rise in OI often precedes unpredictable price movements. With Bitcoin currently around $83,000, a major liquidation event could occur if prices drop below the $70,000–$80,000 range.
Declining market value and weak demand indicators suggest cautious investor sentiment. The inability to hold above key demand levels has contributed to Bitcoin’s price drop from $105,000 to $77,000.
While the increase in OI indicates higher trading activity, weakening demand creates a bearish outlook for the market. Investors shifting towards safer assets and reassessing their positions point to potential further volatility.
Given the current conditions, Bitcoin traders should prepare for price fluctuations due to rising OI and weakening demand.
Source: Crypto Academy
Image Source: GettyImages
