Bitcoin’s Open Interest (OI) has seen significant growth recently, with several experts reporting that the metric has risen to a new all-time high. However, Alpharactal, an investment data analytics platform, has addressed the claims, noting that open interest in BTC has yet to regain its current peak.
Open interest in Bitcoin remains below all-time highs
According to According to Alpharactal, open interest in Bitcoin, the largest cryptocurrency, remains below current all-time highs, indicating that the market is still cautious despite recent positive price movements.
Bitcoin open interest is an important indicator that refers to the total number of outstanding BTC futures or options contracts in the market. While this metric has seen notable growth during Bitcoin’s recent price recovery, but has yet to surpass its current peak, which was reached in 2021.
The data analytics platform shared the update on the X Platform (formerly Twitter) after citing a flurry of analysis about BTC’s open interest hitting a new all-time high. “We have seen a lot of analysis being shared about a new ATH in open interest. However, we emphasize that this depends on the number of exchanges being analyzed,” the platform said.
Alpharactal claims there is interest in it Bitcoin is still below its current peak after conducting a broader study of multiple data crypto exchanges. Nevertheless, the measure is currently closer to the level, with the historical high being $42.25 billion, while the current value is $41.92 billion, indicating that rising sentiment among investors and traders, as they continue to take a cautious approach.
The platform drew attention to the 2021 cycle, highlighting that open interest during the period failed to maintain its upward movement after creating a double top. Alphractal has mainly attributed the recent increase in open interest in Bitcoin, which was also observed in late 2021, to the Chicago Mercantile Exchange (CME). If the key metric does indeed reach a new peak, the platform has promised to share the information with the crypto community.
Is BTC gearing up for a retest?
Currently, BTC shows potential for a continued uptrend after a recovery early in the week, sparking optimism within the general community about an upcoming rally. Although BTC maintains a healthy movement, crypto expert and trader is warned investors about a possible retest in the coming days.
Rekt Capital noted that Bitcoin is currently gradually approaching the Channel Top in preparation for a crucial retest. “After all, Bitcoin has failed this retest every time in recent months,” he added. According to the expert, this retest is crucial for BTC as it will serve as a catalyst for higher prices in the short term, possibly up to a new record ever.
Featured image from Unsplash, chart from Tradingview.com