Binance's Rising Open Interest: A Prelude to Bitcoin's Clear Break or Harsh Sell-off?

Bitcoin's open interest (OI) on Binance is nearing its mid-to-late July highs at around $13.7 billion, indicating an increase in speculative market activity. Current data suggests new long positions are being formed, making the market more leveraged and increasing the risk of a long squeeze if prices drop. The $119,000-$120,000 range is a critical decision zone, and a breakout above this with high OI could push prices up, but this would be fragile and prone to sharp reversals.

Conversely, rejection at this level could lead to a wave of liquidations. The liquidity trend is another factor that could influence Bitcoin's next move, with current figures potentially fuelling further gains if they increase, while a drop with strong network growth could signal a pullback.