Bitcoin’s Open Interest (OI) has seen considerable growth recently, with numerous experts noting that this metric has reached a new all-time high. However, Alphractal, an investment data analysis platform, has responded to these assertions, pointing out that Bitcoin’s open interest has not yet regained its previous peak.
Open Interest In Bitcoin Still Below All-Time High
According to Alphractal, the open interest in Bitcoin, the leading cryptocurrency, remains under its existing all-time high, suggesting that the market is still exercising caution even amidst favorable recent price changes.
Bitcoin open interest serves as a crucial indicator that represents the total number of active BTC futures or options contracts in circulation. Even though this metric has experienced significant growth during Bitcoin’s recent price bounce, it has yet to exceed its peak established in 2021.
The data analysis platform shared this update on the X (formerly Twitter) platform, following a flurry of analyses claiming that BTC’s open interest had reached a new all-time high. “There has been substantial analysis circulating about a new ATH in open interest. However, we stress that this depends on how many exchanges are evaluated,” the platform remarked.
Alphractal has concluded that Bitcoin’s open interest remains short of its current peak after conducting a broader analysis across various crypto exchanges. Nonetheless, the metric is trending upward, with the historical peak set at $42.25 billion while the current figure stands at $41.92 billion, indicating increasing positive sentiment among investors and traders who are adopting a measured approach.
Reflecting on the 2021 cycle, the platform noted that open interest during that time was unable to sustain its upward momentum after forming a double top. Alphractal has credited the recent rise in Bitcoin’s open interest, which was similarly observed at the close of 2021, primarily to the Chicago Mercantile Exchange (CME). The platform has promised to update the crypto community should the key metric indeed reach a new peak.
Is BTC Preparing For A Retest?
Currently, BTC appears to be set for a sustained upward trend following a rebound early in the week, fostering optimism within the broader community regarding a potential rally. Yet despite BTC’s upward trajectory, crypto analyst and trader Rekt Capital has cautioned investors of a possible retest in the coming days.
Rekt Capital indicated that Bitcoin is slowly nearing the Channel Top in anticipation of a significant retest. “After all, Bitcoin has not successfully passed this retest in recent months,” he pointed out. According to the expert, this retest is pivotal for BTC as it may serve as a trigger for higher prices shortly, potentially leading to a new all-time high.
Featured image from Unsplash, chart from Tradingview.com
