- Bitcoin Open Interest soared to over $19 billion after a $2.5 billion liquidation of Futures.
- BTC is facing strong resistance at $63,400, with the recent price hovering around $62,700 after rising 3%.
Bitcoins [BTC] Open Interest experienced significant volatility following a recent price increase, with several positions being closed.
Despite this, Open Interest in Bitcoin Futures has maintained a high level, and even a notable spike has been observed in recent days, indicating continued interest from traders.
Bitcoin Futures Are Experiencing A Shake-up
Data from Glass junction revealed that during Bitcoin’s price surge, approximately $2.5 billion worth of Futures Open Interest was forcibly closed, likely wiping out many short sellers.
However, the percentage decline in Open Interest across the three largest perpetual exchanges remained below 5%, indicating that the substantial impact did not lead to a dramatic market collapse.
Source: Glassnode
This highlighted the resilience of the market, which, even amid increased volatility, could continue to impact leveraged traders.
Historically, during Bitcoin’s all-time high (ATH) in March, the total cost of leverage reached as much as $120 million weekly.
This figure has fallen to $15.3 million per week in recent weeks, reflecting a significant decline in speculative, long-term oriented trading as the market entered a range-bound phase.
More money is flowing into Bitcoin’s Open Interest
Despite the previous closure of large positions, traders continue to open new positions.
According to CryptoQuant, Bitcoin Open Interest, which was approximately $17.5 billion on October 10, increased to over $19 billion on October 12.
Although there has been a slight decline since then, Open Interest remained strong at over $18 billion.
Source: CryptoQuant
This renewed interest from traders is largely attributed to Bitcoin’s recent price surge, which pushed the cryptocurrency above the $63,000 mark.
The rise in Open Interest indicates that traders are actively positioning themselves in anticipation of further price movements.
BTC is facing resistance at key price levels
An analysis of Bitcoin’s daily price chart showed that BTC experienced a 3% price increase on October 11, reaching $62,500.
This rally also pushed the price above the 50-day moving average (yellow line), which had previously served as a significant resistance level.
Source: TradingView
However, Bitcoin now faced heavier resistance at its 200-day moving average (blue line), positioned around $63,400.
While the recent price surge pushed BTC to around $63,100, the cryptocurrency failed to break through this crucial level.
At the time of writing, Bitcoin is down slightly at $62,700, marking a 1% decline and moving it further away from resistance.
Despite a period of volatilityility and the forced closure of billions in Futures Open Interest, Bitcoin Open Interest remains strong.
Read Bitcoin’s [BTC] Price forecast 2024-25
The recent price rise to $63,000 reflects increasing optimism among traders, although there is strong resistance around $63,400.
The coming days will determine whether Bitcoin can break this barrier or continue to face challenges at this key price level