On-chain data shows the Bitcoin open interest is sharply rising, a sign that a long squeeze may be brewing in the crypto futures market. Bitcoin Open Interest Has Observed Rise Recently, While Funding Rates Remain Positive As pointed out by an analyst in a CryptoQuant post, the futures market may be heading towards a long squeeze in the near future. The “open interest” is an indicator that measures the total amount of Bitcoin futures positions currently open on derivatives exchanges. It includes both long and short positions. An increasing value of the metric suggests users are opening more positions right now. Such a trend can lead to higher volatility in the crypto’s price. On the other hand, a lowing open interest can mean positions on exchanges are closing down. A rapid swing in the price can cause a mass liquidation, sharply taking the indicator’s value down. Related Reading | Bitcoin Bearish Signal: Whale Ratio Continues To Stay At High Value These liquidations cascade together, amplifying the price move. Such an event is called a long or short liquidation “squeeze” (depending on the direction of the price change). Now, here is a chart that shows the trend in the Bitcoin funding rates over the past couple of weeks: Looks like the value of the metric has moved up recently | Source: CryptoQuant As you can see in the above graph, the Bitcoin open interest has observed a signific...
XRP Price Prediction For January 26
