NEWSLETTER
bitcoin has seen a recovery above $ 99,000 recently, but the trend that takes place in open interest could generate concerns about the longevity of the increase.
bitcoin Open Interest has shot together with the last rally
In a new one <a target="_blank" href="https://x.com/JA_Maartun/status/1892668143396340134″ target=”_blank” rel=”noopener nofollow”>mail In x, the maartunn cryptocant community analyst spoke about bitcoin's open interest along with the last price rally. The “open interest” here refers to an indicator that monitors the total number of positions related to btc that are currently open in all derivative exchanges.
When the value of this metric increases, it means that derivative users are opening new positions. In general, the total amount of leverage increases in the sector as new positions appear, so this type of trend can lead to greater volatility for the price of the asset.
On the other hand, the value of the indicator that records a decrease implies that the holders are closing positions of their own will or are being liquidated by their platform. The cryptocurrency can act more stable after such leverage.
Now, here is the picture shared by the analyst, which shows the trend in bitcoin's open interest, as well as its percentage change of 24 hours, during the last week:
<img decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2025/02/Bitcoin-breaks-99k-but-the-analyst-warns-the-leverage.jpeg" alt="bitcoin Open Interest” width=”1600″ height=”900″/>
The value of the metric appears to have shot up during the past day | Source: <a target="_blank" href="https://x.com/JA_Maartun/status/1892668143396340134/photo/1" target="_blank" rel="noopener nofollow">@JA_Maartun on x
From the previous graph, it is visible that bitcoin's open interest has seen a rapid increase along with the last recovery rally in the price of the currency. In the peak, the 24 -hour percentage change reached the 7.2%mark, which is quite significant.
While it is normal for speculative activity to follow an acute movement in cryptocurrency, an excess of it can be an alarming sign. This is because in a high leverage environment, the possibilities of a mass settlement event can become notable.
In theory, the volatility that comes out of this chaos of the derivative market can take the cryptocurrency in any direction, but generally the open interest peaks that accompany the manifestations end up acting as an impedance for it. Therefore, it is possible that bitcoin's last Rally can also relax volatile.
The trend in open interest is not the only one that suggests that volatility could come for the asset, as the Glassnode analysis firm has indicated in an x <a target="_blank" href="https://x.com/glassnode/status/1892901010575700134″ target=”_blank” rel=”noopener nofollow”>mail.
<img loading="lazy" decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2025/02/1740236955_526_Bitcoin-breaks-99k-but-the-analyst-warns-the-leverage.jpeg" alt="Volatility made by bitcoin” width=”1800″ height=”1013″/>
The trend in the btc Realized Volatility over the past few years | Source: <a target="_blank" href="https://x.com/glassnode/status/1892901010575700134/photo/1" target="_blank" rel="noopener nofollow">Glassnode on x
The table shared by the analysis firm is for the volatility made for 1 week, an indicator that tracks the percentage change between the highest and lowest points of the bitcoin price recorded during the last seven days.
As shown in the graph, the value of the metric has collapsed recently, which implies that the asset has been operating within a very narrow range. “In the last four years, it has dropped only a few times, for example, October 2024 (22.88%) and November 2023 (21.35%),” explains Glassnode. “Similar compressions in the past led to the main market movements.”
btc price
After a jump of around 2% in the last 24 hours, bitcoin has recovered above the level of $ 99,300.
x/AvmQtSFU/” alt=”bitcoin Price Graph” width=”1486″ height=”889″/>
Looks like the price of the coin has been marching up in recent days | Source: BTCUSDT on TradingView
Outstanding image of Dall-E, Glassnode.com, Cryptoquant.com, Chart de TrainingView.com
