Binance Open Interest May Set Bitcoin On a Bullish Ride, Here’s Why
The post Binance Open Interest May Set Bitcoin On a Bullish Ride, Here’s Why appeared on BitcoinEthereumNews.com. Bitcoin (BTC) USD is set for a bullish performance amid an intriguing divergence between price and Open Interest on Binance. The Bitcoin Open Interest (OI) on Binance has recorded a series of lower lows, while the price indicates liquidation is fading. However, demand for Bitcoin has dropped, raising speculations about a potential price decline. The Binance OI and Bitcoin (USD) Divergence Amr Taha, an analyst at the onchain data analytics platform, pointed out the Binance OI and Bitcoin divergence in a blog post. According to the analyst, Bitcoin has shown a complex set of signals, especially on the Binance crypto exchange. He posted a CryptoQuant chart that revealed declines in Bitcoin open interest on Binance. The slump in Bitcoin USD OI shows dwindling interest among investors in the futures derivatives market. In contrast, BTC has formed consistent equal lows slightly above $104,000, as seen in the Binance BTC price and OI change chart. Short liquidations were minimal, while long positions were closed forcefully. Historically, BTC has shown bullish signals when paired with signs of liquidation exhaustion and fading open interest. Notably, the Bitcoin divergence on Binance coincides with the Federal Reserve’s recent decision to keep interest rates unchanged. In the past, such a move usually preceded a sharp price rally in Bitcoin. On Wednesday, the price of Bitcoin bounced slightly after Fed Chair Jerome Powell announced that rates would remain unchanged at 4.50%. A pause in interest rates is a macroeconomic signal that often boosts cryptocurrencies like Bitcoin and other risk-on assets. Bitcoin (USD) Demand from New Investors Slumps While the Bitcoin OI on Binance and the slowing liquidations hint at a price rally, BTC is seeing reduced demand from new investors. According to CryptoQuant data, new money into Bitcoin reduced substantially after the coin rallied towards $112,000. Image Source:…
The post Binance Open Interest May Set Bitcoin On a Bullish Ride, Here’s Why appeared on BitcoinEthereumNews.com.
Bitcoin (BTC) USD is set for a bullish performance amid an intriguing divergence between price and Open Interest on Binance. The Bitcoin Open Interest (OI) on Binance has recorded a series of lower lows, while the price indicates liquidation is fading. However, demand for Bitcoin has dropped, raising speculations about a potential price decline. The Binance OI and Bitcoin (USD) Divergence Amr Taha, an analyst at the onchain data analytics platform, pointed out the Binance OI and Bitcoin divergence in a blog post. According to the analyst, Bitcoin has shown a complex set of signals, especially on the Binance crypto exchange. He posted a CryptoQuant chart that revealed declines in Bitcoin open interest on Binance. The slump in Bitcoin USD OI shows dwindling interest among investors in the futures derivatives market. In contrast, BTC has formed consistent equal lows slightly above $104,000, as seen in the Binance BTC price and OI change chart. Short liquidations were minimal, while long positions were closed forcefully. Historically, BTC has shown bullish signals when paired with signs of liquidation exhaustion and fading open interest. Notably, the Bitcoin divergence on Binance coincides with the Federal Reserve’s recent decision to keep interest rates unchanged. In the past, such a move usually preceded a sharp price rally in Bitcoin. On Wednesday, the price of Bitcoin bounced slightly after Fed Chair Jerome Powell announced that rates would remain unchanged at 4.50%. A pause in interest rates is a macroeconomic signal that often boosts cryptocurrencies like Bitcoin and other risk-on assets. Bitcoin (USD) Demand from New Investors Slumps While the Bitcoin OI on Binance and the slowing liquidations hint at a price rally, BTC is seeing reduced demand from new investors. According to CryptoQuant data, new money into Bitcoin reduced substantially after the coin rallied towards $112,000. Image Source:…
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