Crypto Alliance2023-01-14

Open Interest Dips: A Sign of a Bearish Turn for Bitcoin?

Key Summary: 1- Bitcoin's Best Week : A Defiance of Negative Market Sentiment 1- Biggest Week for Crypto is up more than 11% so far this week 2- And open interest of Bitcoin starts to decrease It's a promising start to the new year for the tokens, which in 2022 lost more than 60% in its second-worst annual performance on record. Solana tokens are up 60% on a cumulative basis and are ranked as the top sector abroad. While the rally in bitcoin is becoming the most hated rally where many miss out and watching from the sidelines, it starts to hate the rally. On the other hand, we saw $700 million shorts liquidated in just a few hours after Bitcoin breaks $21,000. However, Open Interest for Bitcoin starts to drop again, (Graph;1 below) indicating a correction or reversal in bitcoin prices. It would be interesting to see where the market leads in the next few coming days and weeks. I would suggest investors and traders to keep an eye on open interest, which is currently starting to turn. OI is one of the metrics that traders and analysts often use to gauge the market sentiment and predict price movements. That's it for now, until next time; Crypto Alliance