- BTC open interest in futures rises to the highest level since January 2023.
- The price of the coin shows a trend within a certain range.
Bitcoins [BTC] Open interest on futures has risen to the highest level in sixteen months Mint glass’ facts.
According to the on-chain data provider, the leading coin’s total open interest rose to 516,000 BTC as of May 29. The last time BTC open interest in futures was this high was in January 2023.
Source: Coinglass
BTC open futures interest tracks the total number of outstanding futures contracts or positions that have not yet been closed or settled. When the price rises, it indicates a spike in market activity or a positive change in traders’ sentiment.
It suggests that more market participants are opening new positions.
In addition to BTC’s rising open interest, the funding rate on cryptocurrency exchanges has remained positive even as it continues to encounter significant resistance at the $70,000 price level.
Perpetual futures contracts use financing rates to ensure that the contract price remains close to the spot price.
When an asset’s futures funding rate is positive, it indicates strong demand for long positions. This bullish signal indicates a potential for continued price growth of the asset.
According to Coinglass data, BTC’s funding rate stood at 0.0106% as of press time.
BTC is stuck in a range
AMBCrypto found that BTC has been trading close to its 20-day exponential moving average for the past seven days. When an asset is traded this way, the market is said to be in consolidation.
This is because such moves mean that neither buyers nor sellers exert strong control over the market.
BTC’s narrow move over the past few days was also confirmed by the declining Average True Range (ATR). At 2,373 at the time of writing, the coin’s ATR has fallen by almost 10% over the past week.
An asset’s ATR measures its price volatility over a chosen period. When the trend is downward, it can be taken as a sign of consolidation.
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Furthermore, the values of BTC’s Relative Strength Index (RSI) and Money Flow Index (MFI) were 53.85 and 57.94 respectively at the time of writing.
Source: SHIB/USDT, TradingView
At these values, these indicators showed that neither buyers nor sellers were in full control as the price of the coin continued to consolidate or fluctuate within a certain range.