$BTC More knowledge for newbies:
Is Bitcoin Open Interest Too High or Can BTC Price Still Rise?
Time_April 16, 2025 19:00
Bitcoin open interest remains high despite the price drop, indicating that interest in the leading cryptocurrency by market capitalization is still strong. This interest is certainly a good thing for the cryptocurrency market, especially in the long run. But looking back at previous trends regarding Bitcoin open interest, it is worrying that the value is still too high, and this could hinder Bitcoin's price recovery from here.
Bitcoin Open Interest Remains Above $56 Billion:
Data from Coinglass shows that Bitcoin open interest remains quite high and is not far from its peak in November 2024 after BTC hit a new high above $109,000. This persistently high open interest suggests that traders still hold significant positions in the digital asset despite its price falling more than 20% since then, which could hamper the recovery.
Bitcoin’s total open interest is currently at $56.17 billion, down about 22% from its all-time high of $71.85 billion. This shows a strong correlation between the price decline and open interest. However, open interest remaining at this high level could have some negative implications for BTC price and the cryptocurrency market.
For example, looking at the chart above, it is clear that Bitcoin has seen its biggest price moves when open interest is low. This shows that the lack of market pressure has allowed buyers to push the price up. Therefore, with open interest remaining at such high levels, it may be difficult to push the price higher. With this, BTC prices may continue to fall before seeing further recovery from here.
BTC Price About to Drop Below $70,000?
Aside from Bitcoin’s open interest remaining high, a crypto analyst also gave reasons why BTC could see a crash from here. The first factor cited is a false bullish divergence. According to the analysis, the RSI may be showing a bullish divergence but the price action is not following it. This could therefore lead to a bull trap, dragging traders into losses as the price collapses.
Another factor that came to the fore was that Bitcoin price broke below the trendline support line after falling to lows of $80,000. This suggests that bullish momentum is weakening and the recent recovery may not hold.
Given the factors listed above, the crypto analyst expects Bitcoin to fall another 20% from here. The target is set at $69,149, which would be an all-time high since 2021. “This level coincides with the intersection of the channel support line and the horizontal price structure,” the analyst explained.
👉In summary: the current (OI) level is enough for you to see that whether the trend is up or down, there are extremely high bets from all sides on BTC. Usually this will lead to strong price fluctuations and a breakout phase... long and short be careful 🤷🤷
