RATE Group | BitMEX Open Interest Hitting $1B Could Be Bullish for Bitcoin This Time
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BitMEX Open Interest Hitting $1B Could Be Bullish for Bitcoin This Time

30 Jan BitMEX Open Interest Hitting $1B Could Be Bullish for Bitcoin This Time

Posted at 20:17h in Bitcoin News by

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Experts believe bitcoin’s explosive price rally is about to hit an end as a trend-defining technical indicator screams ‘sell.’

Bitcoin’s Open Interest (OI) is approaching $1 billion on BitMEX. Historically, whenever the total valuation of unsettled contracts touches the said valuation, bitcoin’s price in spot markets plunge. In September 2019, for instance, the cryptocurrency underwent a significant sell-off, dropping by up to 26.21 percent when the BitMEX OI reached $1.03 billion.

bitcoin, cryptocurrency, bitmex,

BitMEX OI hitting historically leads to massive bitcoin bearish corrections | Source: TradingView.com, Scalpex

It dipped in a similar manner in August and July 2019, showing a positive correlation between the OI and prices.

Breaking Patterns

Open Interest indicator works in conjunction with two more technical data: Volume and Price. If all the parameters are going up in tandem, then it means the underlying asset’s uptrend is strong and bullish, and, therefore, should continue to trend higher, as…

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