Bitcoin traders still optimistic: Bitmex open interest still over $ 1 billion
Over the weekend, Bitcoin broke again for the first time in the year 2020 10. 000 dollars, but an abrupt sell-off caused a decline of over 250 dollars in less than a minute and pushed the value back below the important psychological level.
But neither the rise nor the rejection caused a significant change in the BitMEX open interest. The crypto market and asset valuations are heavily determined by investors on the top crypto exchanges who struggle with buy and sell orders.
Open Interest represents the total cumulative value that is currently in position and is ready to benefit – or suffer losses – from the next big price movement for Bitcoin and Altcoins.
Open interest has skyrocketed in recent weeks and has reached some of the highest levels. Every time the open interest is worth over $ 1 billion or over 100. 000 BTC, an exceptionally strong movement of the Bitcoin rate triggered.
Depending on the direction, many of the traders will take profits while other positions are liquidated or stopped at a loss. The resulting action causes open interest to drop to a normal, stable level before the cycle repeats while the price is moving extremely.
It is now clear that a much more explosive move is required to get traders to change their current positions. The long positions continue to outweigh the short positions on the largest crypto platforms.
Crypto market remains optimistic
When Bitcoin rallies over 10. 000 dollar could continue, a sharp rise could go over the key level beyond the FOMO (Fear of Missing Out) as the crypto market has done since the crypto bubble peaked in the year 2017 has not seen.
Back then, Bitcoin rose above 10. 000 dollars, then less than a month later, an all-time high of 20. 000 dollar. Nevertheless, BTC has to rise much more this time, because so far the cryptocurrency is not yet a topic of conversation among the “normal” population, in contrast to it as BTC a year 2017 the 10 K cracked.
Proof of text: newsbtc