Have you ever wondered why the market moves violently without any news?
↳ The answer is often in Open Interest (OI) – the open liquidity in derivatives contracts (Futures)
This tool reveals how many contracts are currently open...
But the important thing is: When does it increase? When does it decrease? And why? 💥
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🧩 What is Open Interest?
It is the number of long (Long) and short (Short) contracts that are still “open”
↳ If OI increases = New traders entering
↳ If OI decreases = Closing positions or liquidation
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🔍 What does OI change mean with the price?
📈 The price rises + OI rises → Traders enter Long = Potential real rise
📉 The price drops + OI rises → Traders enter Short = Increasing selling pressure
🚨 The price moves + OI decreases → Liquidation of positions = Possibility of reversal!
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🧠 How to use it wisely?
✅ Monitor the moment OI increases rapidly → A strong movement often follows
✅ Compare with volume: If both volume and OI rise together → Confirmation of institutional or whale entry
✅ Follow congestion zones (high OI zones) → Liquidation and price explosions often occur there
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📊 Practical example:
• The price of $BTC at 60K, and started rising gradually
• Suddenly, OI jumped 400 million in an hour
• Then the price exploded to 62.8K in less than 4 hours
↳ Explanation: Entry of large positions from professional traders, and OI was an early signal for the move
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🔧 Tools for reading OI:
• Coinglass
• CryptoQuant
• Binance Futures Dashboard
• Laevitas.ch (Professional)
💬 Type “📊 OI” if you want me to send you a complete visual explanation with maps illustrating how to analyze OI practically on trending currencies!
