In recent weeks, both Bitcoin and Ethereum have seen an interesting wave of price action with high volatility. Of course this volatility has stimulated a wave of trade, while crypto traders see this as a time of opportunities because of the fluctuations. The result is a rapid increase in the open importance of both Bitcoin and Ethereum during this time. Although this is important in itself, looking at the previous versions, it could suggest where the Bitcoin and Ethereum prices go next time.
Bitcoin and Ethereum open interest remain very high
By the end of August, the Ethereum price began to rise rapidly, fed by large purchases from Ethereum Treasury companies such as Bitmine and Sharplink. This push would eventually reach the Ethereum prize a brand new of all time and beat its $ 4,800 peak from 2021 after the climb of above $ 4,950.
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In the same spirit, the open interest had risen quickly and this statistics also rose to new all time. By August 23, in the midst of the frenzy, the Ethereum opened interest for the first time in history above $ 70 billion and marked an important milestone. Since then, Ethereum’s open interest has withdrawn. But it is still above $ 55 billion at the time of this writing, which suggests that interest in the Altcoin is still high.
Although the Bitcoin Open Interest did not reach new peaks in the month of August in August, it also remained at very high levels. Data from Coinglass to show That the Bitcoin open interest is still on average at a high $ 80 billion, still close to the $ 86 billion of all time that was admitted in July.
What the open interest at ATHS can mean
Looking at earlier versions When the Bitcoin and Ethereum open interest have been high too all time, there is usually a period of consolidation that follows, especially as the price withdraws. This was seen after the first all-time highlights of the year in February, which was followed by a few months of consolidation.
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Again, the peaks in June were followed by Short consolidationsIt ended in July. And then, another consolidation before the open interest began to recover in August. This shows that the period of consolidation is not always long, but at the end there is always a different increase in the open interest that coincides with a price increase.
From here, if the open interest of Bitcoin and Ethereum would touch new peaks, it would probably be mean that their prices are ready to touch new highlights also. After the trend of the last few months, the open interest could be picked up again by the end of September, brought forward by price repair.
Featured image of dall.e, graph of tradingview.com