- Bitcoin’s Open Interest decreased, giving rise to spot accumulation which could trigger another rally.
- BTC may retrace below $44,000 but with a recovery in the MFI, the coin can inch towards $45,000.
- Traders are unbothered about the sideways price action and hold positions projecting a price increase.
James Van Straten, a data analyst, posted that Bitcoin’s (BTC) price increase was because Open Interest had decreased and spot accumulation had been increasing. To arrive at this inference, Van Straten compared Bitcoin’s Open Interest around October to the state of the indicator on December 8.
Another reason why this #Bitcoin rally has legs is open interest has continued to drop for the past 7 days. Sign of spot accumulation.Similar levels of OI as October when the price was $26,000. https://t.co/YMsL7HrAQ4 pic.twitter.com/mrTzfVaUX6
— James Van Straten (@jimmyvs24) December 8, 2023
Uptrend Becomes Weak
According to Coin Edition’s observation, the drop in Open Interest and rise in spot accumulation was one of the reasons Bitcoin rose above $33,000 around that time. Now, this decrease in Open Interest suggests that traders are closing contracts l…
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