Bitcoin Open Interest record high as analyst predicts fireworks for BTC later this month

Bitcoin is well on the way to a “boom” as the derivatives market regains strength in 2022, according to a new forecast.

In one tweet 4, Vetle Lunde, an analyst at Arcane Research, confirmed that Bitcoin Open Interest (OI) has returned to November’s all-time high (ATH).

Open interest suggests an “outbreak” in a few weeks

Bitcoin futures and options hit during the year-end decline, but by the end of the holiday season there is strong consensus that BTC is gearing up for an impressive comeback.

Some say institutional investors will become a major force in the bitcoin and derivatives market, and there are already signs of this renewed interest.

Open interest has now returned to the same level as it was the third week of November when Bitcoin price hit an ATH of $ 69,000.

In contrast to then, however, the financing rate is currently neutral – an important basis for a volatile development.

“The Bitcoin Open Interest today exceeded the highs of November, with the debt building up neutral to slightly below neutral in the financing rate,” commented Lunde.

Bitcoin OI vs. Financing Rate Binance Chart | Source: Twitter

Not just Lunde. 3, co-founder of the Decentrader Filbfilb trading platform, also noted the encouraging activity of OI.

“The OI is very high relative to market cap … It is unlikely to make it through the last week of this month without a breakout,” he said. to write.

Ethereum hits first high of 2022

Data from TradingView shows Bitcoin trading at press time was $ 46,205. While analysts are generally calm about action in short periods of time, altcoins are the main point of concern.

BTC / USD 1 hour frame chart | Source: TradingView

“The point of maximum financial opportunities for altcoins now remains,” said analyst Michaël van de Poppe, reiterating previous comments on the opportunities offered by the altcoin market.

Ether (ETH), the largest altcoin by market cap, hit an intraday high of $ 3,879, a previous high of 2022.

ETH / USD 1 hour frame chart | Source: TradingView

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