Journalist
Posted:
- Open interest for Bitcoin options has risen to an all-time high.
- As the coin regains $37,000, volatility starts to kick in.
Throughout its 15-year existence, Bitcoin’s [BTC] Open interest on options has reached an all-time high, surpassing $16 billion, data shows Glass junction showed.
Source: Glassnode
BTC options open interest measures the number of options contracts that have been traded but have not yet closed or expired. When it rises, it suggests that the BTC futures market is highly liquid with many participants.
The increase in open interest coincides with Bitcoin regaining the $37,000 price level during the November 15 intraday trading session.
The currency rose sharply in October but has consolidated within a tight range since early November, meeting resistance at $37,000.
At the time of writing, the key asset was trading at $37,446. The last time BTC traded at this price was in May 2022, according to data from CoinMarketCap. In the last 24 hours, the value of the coin has increased by 5%.
Short traders continue to make losses
Before the price rally over the past 24 hours, BTC’s price had been trading within a tight range since the beginning of the month. This was due to a slowdown in accumulation and an increase in profit-taking activities.
As a result, some traders in the coin futures market opened short positions in anticipation of a price drop.
However, BTC maintained momentum above $36,000, liquidating these short positions. As of November 9, short liquidations totaled $128 million, exceeding long liquidations.
Furthermore, the recent rally above $37,000 also resulted in the liquidation of short positions worth $51 million, the second highest in the past fifteen days, according to data from Mint glass.
Source: Coinglass
Volatility preparing for a comeback?
Amid BTC price swings within a tight range, price volatility, which had recovered to a multi-month high in October, cooled. However, with a revival of trading activity in the spot coin market, significant price swings could be on the way.
According to AMBCrypto’s assessment, some volatility makers observed on a daily chart started to rise.
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For example, the coin’s Average True Range – which measures market volatility by calculating the average range between high and low prices over a period of time – has risen 13% since November 13.
Similarly, BTC’s Bollinger Bandwidth (BBW) indicator, which saw a decline at the beginning of the month, has initiated an uptrend.
Source: BTC/USDT on TradingView