Open interest in bitcoin futures has nearly doubled in the past few weeks, jumping from levels below 6 thousand to almost 10 thousand contracts. As a result, the number of contracts reached a record high.
Technical analyst and trader Tom McClellan, who has more than 36 thousand followers on Twitter, drew attention to this trend.
Open interest is the total number of open contracts for bitcoin futures or positions not closed by the buyer or seller.
I do not profess to be a bitcoin expert in anysense. But I shared this interesting chart in my Daily Edition this evening. https://t.co/67VxUKqXpD. Total open interest in bitcoin futures has nearly doubled in the past 2 weeks. Something interesting is brewing. pic.twitter.com/jwoQ3vbBLN
- Tom McClellan (@McClellanOsc) May 16, 2020
Open interest is not a reliable indicatorthe future dynamics of the Bitcoin exchange rate (BTC), but gives some idea of activity in the market as a whole. When open interest is at a very low level, this indicates a low market activity, and vice versa.
BTC Dominance Level
Bitcoin's dominance level began to slow as the fourth consecutive week of growth ended. If this trend continues, the situation in the altcoin market may worsen.
Level of dominance that measures sizeBitcoin's total market capitalization shows good momentum in the second quarter. After rising to 70% in January, a month later the indicator fell to 62%.
The indicator reached a maximum of 69% on May 8, when the price touched a local maximum at around $ 10,000, after which it partially corrected.
At the time of writing, the level of bitcoin dominance has recovered to 68.2%.
The indicator has become less volatile over the past year and a half. Since July 2019, the level of dominance has fluctuated in the range of 63-71%.
Recent bitcoin halving probably playedan important role in the growth of the exchange rate and the level of domination of bitcoin. If this trend continues, the altcoin market may wait for a shake in the second half of the year.</p>
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