Bitcoin open interest points to the possibility of more volatility as the weekly candle close indicates the support levels for the price of BTC.
As bulls made money from weekend trading, Bitcoin moved back into the middle of an intraday trading range until the weekly close on February 18.
Trader: Despite a spike in OI, the Bitcoin rally is “healthy.”
Cointelegraph Markets Pro and TradingView data revealed that $52,000 was the center of the BTC price consolidation.
The day before, the biggest cryptocurrency dropped to $50,680 on Bitstamp, its lowest point in several days.
But in the hours that followed, there was a quick bounce that added roughly $1,500, and as of this writing, there has been no further retest of the lows.
Popular trader Skew observed a shift in trader behavior in the second half of Wall Street trading week after analyzing the week’s events.
He disclosed that spot purchasing had decreased by the weekend and that there had been “mostly taker driven dips & bounces since.”
He posted that day, “so far seeing some spot buyers return here with binance spot leading.”
Meanwhile, statistics from monitoring resource CoinGlass indicated that rising open interest (OI) on CME Group’s Bitcoin futures markets, which reached a record $6.8 billion, was a sign of impending turbulence.
But when open interest was discussed more widely, well-known trader Daan Crypto Trades saw a difference when this was expressed in Bitcoin.
“In my opinion, the October rally of +100% has been beneficial for leverage,” he stated.
Weekly close levels for the key BTC price emerge.
According to Skew, bulls must maintain their upward momentum in the relative strength index (RSI) of Bitcoin on 4-hour timeframes until the weekly close.
Another significant figure was the 21-period exponential moving average (EMA), which is currently around $51,500.
He described the situation on Binance as follows: “In terms of spot flows around $52K – $53K area, notable spot selling into bounces which is often the case with profit taking.”
