THE Bitcoin Open Interest can often be an indication of where the BTC Price could be the next step depending on whether the metric is up or down. This time around, Bitcoin open interest increased significantly, reaching its highest level in 19 months. Using historical data, it is possible to extrapolate what this means for the crypto price, especially as investors remain very bullish.
Bitcoin Open Interest Reaches $17.04 Billion
In an interesting turn of events, the Bitcoin Open Interest has been growing rapidly on various exchanges. In the last 24 hours alone, this metric has increased by a total of 7.89% across all exchanges in the space, bringing total open interest to 454,150 BTC, worth a staggering $17.04 billion. dollars.
According to the data present on the CoinGlass website, the last time Bitcoin open interest moved this way and reached this high was in March 2022, before the historic Terra LUNA crash which plunged the market into a prolonged period of bear market.
This means that the last time the Bitcoin Open Interest This rise occurred at a time when investors were still gripped by the euphoria of the bull run. Thus, the historical performance of BTC Price at the time, regarding open interest, this could serve as a guide to what might happen next to the price of the digital asset.
BTC price finds support at $37,400 | Source: BTCUSD on Tradingview.com
Historical data indicates that the price of BTC will increase
Similar to the current trend, Bitcoin open interest increased from around 38,000 BTC to over 44,000 BTC in the span of a month, and the BTC Price followed quickly. This trend saw the price increase in March 2022, from $38,700 to over $47,000 before the end of the month.
Going by this historical performance and assuming Bitcoin continues this trend, the rally may be far from over. THE BTC Price is also similarly priced at $37,500 and a similar rise could take its price to $45,000 before the end of the month.
However, it is also possible that the open interest could peak at this level and start to decline. Once this happens, similar to April 2022, the price of BTC could start to fall as open interest drops. A similar crash would bring the price back towards $27,000.