While Bitcoin’s rebound to the $63,000 mark on Monday provided some encouragement, analysts’ data suggest that the BTC rollercoaster ride is far from over.
Monitoring Bitcoin’s Open Interest is crucial for investors to make informed decisions in the coming months, as it reveals pivotal levels of both support and resistance within the market. On a positive note, reports indicate that from BTC’s ATH of $72,500 to the current price, 10% of all Bitcoin addresses have purchased the coin, signalling a robust level of support. Cryptocurrency exchange Bitget has reported a 43% spike in the number of open positions in BTC among new users, suggesting that those anticipating price gains are making new investments.
According to analytical data from The Block, Bitget has emerged as one of the absolute leaders in OI share in the derivatives market. Bitget’s open interest indicator surpassed $6 billion on May 4th, representing 25% of the total market. Moreover, in the last two weeks, the exchange reported that their total volume of open futures contracts had exceeded Bitget’s market price level — a clear indication that traders anticipate a spike in the price of Bitcoin soon.
A slight positive reversal in Bitcoin’s price and a corresponding increase in open interest in Bitcoin futures suggest that the upward trend will likely continue. However, data indicates that BTC may fluctuate from $58,000 to $72,000 in the next 1-2 months.
In the options market, the implied volatility of ETH and BTC has significantly decreased over the last month, particularly for options expiring in less than a month. This suggests that traders do not anticipate a notable spike in volatility.
The next 1-2 months are expected to be a period of frequent fluctuations before Bitcoin’s anticipated rise to a new ATH, presenting one of the most advantageous times for experienced traders to capitalize on the temporary lull before the impending rally.