NewsletterBitMEX Open Interest On Bitcoin Futures Reaches All-Time Lows, Is A Long Squeeze On The Horizon?
- Bitcoin open interest (OI) hits all-time low signaling a prevalence in a spot induced bull market.
- Is a long squeeze on the horizon for BTC?
Bitcoin (BTC) is finally on an uptrend after a fortnight of terror, trading above the $6,200 USD mark for the past 24 hours. According to data collected from Skew Markets, the current bullish run may be on the verge of experiencing a long squeeze as the markets experience one of the lowest open interest volumes ever.
Bitcoin soars over 45% from yearly lows
BTC/USD witnessed one of its best days yet since the massive selloff on Mar. 12 which saw the price of the top crypto tank to the $3,600 USD level. Currently trading at an average of $6,610 USD across top exchanges, this represents over 69% growth since hitting a year low last week and an impressive 49% so far during the week.
BTC set an intraday high of $6,972 USD on Coinbase taunting a possible breach to the $7,000 key resistance level. However, it seems the current bullish momentum is heavily fueled by the spot market as open interest on BitMEX, CME and Bakkt derivatives hit a record low.
Bitmex OI at All time low of 58k.
We're seeing a spot driven rally on $BTC pic.twitter.com/YJDHYIxnve
— Mohit Sorout ? (@singhsoro) March 20, 2020
This may seem a positive move for BTC in the short term, as HODLers stock up on the coin for the cheap but is the momentum really stable?
Does a long squeeze ensue?
BitMEX set a historic low in its open interest on Bitcoin as the number dipped to 85,000 BTC contracts, approx. $385 million USD. CME options and Bakkt options were facing a similar case as the market signals a move from the derivative markets to spot BTC markets. CME recorded a low of $125 million on its BTC Futures with Bakkt options hitting a low of $3.5 million.
Could this signal an upcoming long squeeze as the bears await to open the shorts on the derivative markets? Well, on the daily charts, BTC indicators signal a possible continuation of the bullish momentum as the relative strength index (RSI) oscillates in a bullish trajectory.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Operation Choke Point: House Republicans Spotlight Biden Administration’s ‘Attack on Crypto’
- Polymarket Rival Kalshi Moves On-Chain With Launch of Tokenized Prediction Markets on Solana
- Tom Lee Says Bitcoin Could Hit New ATH In January As Hassett Becomes Favorite For Fed Chair
- 8 Best Crypto Exchanges That Accept PayPal Deposits and Withdrawals
- Jerome Powell Speech Today: What To Expect as Fed Ends QT
- XRP Price Prediction as Ripple Gets MAS Licence in Singapore
- Ethereum Price Crashes Below $3,000 as $500M Longs Liquidated: What’s Next?
- Pi Network Price Prediction Ahead of December’s 190M Scheduled Unlock
- Dogecoin Price Below $0.15 as Crypto Market Crashes: Will $0.10 Hold?
- Will the Binance Coin Price Rebound as a Key RWA Metric Jumps 99%
- AVAX Price Prediction After Bitwise Files for a Staking ETF — A Rebound Coming?
