BTC Open Interest on the rise again, liquidation risk increases

BTC-Open-Interest-on-the-rise-again-liquidation-risk-increases

After a purge of Open Interest in December with the $42k BTC crash, Open Interest is steadily on the rise again. It is back to the amount where in the past Open Interest liquidations had repeatedly occurred.

Two things are uncertain:
1) When exactly the liquidation happens, Open Interest could keep going up for a while without a liquidation or it could happen anytime. What is more certain is liquidation risk is heightened right now comparing to December 2021.
2) What direction the liquidation will be (if it happens). Although in the past we most commonly see long liquidations. Either a long or short liquidation is in theory possible here, depending on which direction BTC price moves.