Open interest in BTC options promises a bright future for bitcoin
Bitcoin options open interest reaches $ 2 billion.
The number of bitcoins on crypto-exchanges has decreased.
This promises further support for the currency..
The size of open positions in bitcoin options is about $ 2 billion, and such volumes give the market hope for continued growth MTC.
Cryptotraders have a short memory. Yesterday they were terrified of the rollback course bitcoin (BTC) to $ 11,700. Between themes as recently as July they are they rejoiced seeing that currency traded on the way to $ 10 000. If put aside emotions, you can see that objective indicators indicate the persistence of bullish prospects.
Open interest in bitcoin is growing
Open interest in BTC options approaches $ 2 billion – Source: Skew.com
Open interest is a common number unclosed for this moment contracts for various derivatives, such like options and futures. Previously BeInCrypto edition already talked about growth indicator in this year as a whole on crypto market, and on individual exchanges.
Although he is not reliable an indicator of the future price dynamics of an asset, it helps to get a general idea of market activity, as well as the level of liquidity and the inflow of fresh capital. Often following growth prices the underlying asset is growing and open interest in him derivatives, as traders open new positions, which is a kind of vote of confidence in this asset.
On the other hand, high index open interest during periods of a downtrend in the market suggests otherwise. He imagines quantity of money, invested in short positions. Thus, exactly the current price trend bitcoin determines if high open interest is bullish or bearish factor.
In this case, Bitcoin continues to confidently hold above the support of $ 11,400, which, by opinion a number of analysts promise him the preservation of the up-trend. This means that open interest is a bullish signal..
We smile and hodlim
Another bullish market indicator can count the number of bitcoins currently withdrawn on crypto-exchanges. At present time on accounts exchanges located about 2.6 million BTC. This the indicator has significantly decreased compared to the recent peaks in July 2019 and February 2019, which were approaching to 3 million BTC.
According to experts from the analytical service Glassnode, this indicates a weakening of bearish pressure on Bitcoin. The owners of coins stopped bringing them to trading platforms for sale and again prefer to go.
Previously, we already more than once wrote that a factor support for bitcoin is now widespread injection of liquidity into the traditional financial system. This devalues traditional currencies and encourages institutional everything more active convert his attention to alternative investment options.
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