Bitcoin open interest approaches $23B as analyst warns of BTC price euphoria
According to one analyst, Bitcoin needs a stronger breakout to maintain a “month-long rally.”
In his latest X content on October 29, trader and former fund manager Asel Kibar warned against excessive BTC price sentiment.
Kibar: BTC Price Drops for October
Bitcoin (BTC) may be hitting resistance at all-time highs, but for some, BTC/US still has some persuasion.
Market strength is already making traders less risk-averse, Kibar points out.
“Everybody is trying to force their position in their analysis,” he said, uploading a monthly chart.
“Markets don't care about our analysis and position. Get in line and take the one that makes you a sign.
BTC/USD 1-Month Chart. Source: Asel Kibar/Ex
Analyzing the long-term price action, Kibar closes the monthly candle above $73,700 to confirm that the price of BTC is safe. “I'm waiting for that monthly hint like I did with gold. Because that will start a long-term growth of several months from current levels,” he concluded, referring to gold's year-to-date performance.
“October may be closed due to horizontal protest. Let's see what November brings in terms of candle size.
The post cites analysis from earlier in September, however, describing BTC/USD's all-time high resistance as “extremely high”.
“I am neither a bull nor a bear. I am trying to read the price chart to take advantage of the price action,” he said in another post that day.
“I can say this with confidence, any (bullying) objection I get in the mail for a labor setup is because that person has missed the return and is hoping the lower levels get on board.
Bitcoin open interest creates mixed emotions
Other market analysts are concerned about mushrooming open interest (OI) on the trading floor.
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Crypto_Lion, a promoter for onchain analytics platform CryptoQuant, advised in his Quicktake blog posts that day that “risk management must be thorough”.
Bitcoin open interest. Source: CryptoQuant
CryptoQuant data estimates OIA at $22.7 billion at the time of writing. Commenting on X, co-contributor Axel Adler Jr. said that 50% of the total is “bearish.”
“There is no need to hesitate to release them to raise the price,” he said.
Bitcoin future liquidation chart. Source: Axel Adler Jr./X
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
