The Open Interest of Bitcoin [BTC] has experienced significant volatility after the price suddenly increased, causing many positions to be closed.
However, the Open Interest of Bitcoin Futures contracts remains at a high level, with a recent sudden increase, indicating continuous interest from traders.
Bitcoin Futures Contracts Undergo a Slight Shake-up
Data from glassnode reveals that as Bitcoin price surged, around $2.5 billion of Open Interest in Futures contracts was forcibly closed, potentially liquidating many short sellers.
However, the decline in Open Interest across the top three exchanges remained below 5%, indicating that the impact did not lead to a strong market collapse.
This has highlighted the market's resilience, even as strong volatility can continue to affect leveraged traders.
History records that the total leverage cost during Bitcoin's March peak reached $120 million per week.
This figure has now decreased to $15.3 million per week in recent weeks, reflecting a significant reduction in long-biased speculative trading as the market enters a volatile phase.
Inflows Strengthen Bitcoin's Open Interest
Despite the closure of large positions, traders continue to open new positions.
According to CryptoQuant, Bitcoin's Open Interest, which was around $17.5 billion on October 10, has climbed to over $19 billion on October 12.
Although it has seen a slight decline since then, the Open Interest remains strong at over $18 billion.
The renewed interest from traders is largely due to the recent surge in Bitcoin price, pushing the cryptocurrency above the $63,000 mark.
The increase in Open Interest indicates that traders are actively positioning themselves to capitalize on the next price movements.
BTC Faces Resistance at Key Price Levels
Analysis of Bitcoin's daily price chart shows that BTC gained 3% on October 11, reaching $62,500.
This recovery also pushed the price above the 50-day moving average (yellow line), which was a significant resistance level previously.
However, Bitcoin is now facing stronger resistance at the 200-day moving average (blue line), positioned around $63,400.
Although the recent rally has pushed BTC to around $63,100, the cryptocurrency has yet to break above this crucial level.
At the time of writing, Bitcoin has slightly declined to $62,700, marking a 1% drop and moving further away from the resistance level.
Despite the volatility and the forced closure of many Futures contracts, Bitcoin's Open Interest remains robust.
The recent price increase to $63,000 reflects growing optimism among traders, although they face strong resistance around $63,400.
The coming days will determine whether Bitcoin can overcome this barrier or continue to struggle at this critical price point.
