Will Binance OI hit an all-time high, bearish signal or threat ahead?
Over the past 24 hours, Binance has hit a new record as market sentiment shifts and Bitcoin (BTC), the world's largest digital asset, hits an all-time high.
Binance has $8.3 billion in open positions
Amidst this massive market sentiment, on-chain analyst firm CryptoQuant reported on X (formerly Twitter) that net open interest (OI) on Binance, the world's largest cryptocurrency, rose by 12.24% and reached as high as $8.3. billion.
Additionally, total origination transactions reached an all-time high of $23.3 billion. This indicates that Binance alone is contributing a significant 35% of global futures positions. Meanwhile, simply monitoring Binance's on-chain data can provide deep insights into market trends and trader sentiment.
Risk of open demand and market volatility
Despite the new developments of Binance and the entire initial exchange, the volatility in the market may increase risk. The crypto analyst stated in a report on CryptoQuant.
“Sudden increases in open interest (anything over 3% in 24 hours is significant) often indicate future liquidity in the market.”
As the analyst increases in open demand, it indicates that more long and short positions are open in the market and not yet closed. Volatility in the market can increase the pressure on these open positions if volatility rises against them, causing traders to close their positions or risk further losses.
Popular positions opened in the market in the last 24 hours suggest that it may decrease in the coming days.
Bitcoin is currently trading at around $75,900 and has experienced a price increase of over 9% in the last 24 hours. This significant increase was $393.25 million in short positions.
Main fluid levels
Currently, the main liquidity levels are at $73,387 on the lower side and $76,126 on the upper side, traders are overused at these levels, according to Coinglass data.
If the sentiment does not change and the price rises to the $76,126 level, about $358.73 million of short positions will be liquidated. Conversely, if the sentiment changes and the price declines to the $73,387 level, about $1.5 billion of long positions will be liquidated.
This analysis shows that bulls are currently very active and believe that the asset price will not fall below $73,400.
