đ Bitcoin Open Interest Hits Record $44B While BTC Dips Under $116KâWhatâs Next?
Bitcoinâs derivatives market just hit a staggering milestoneâ$44 billion in open interestâeven as the king coin stumbles below $116K. Traders are doubling down, but is this a contrarian signal or pure greed?
Open interest at all-time highs while price retreats? Classic crypto cognitive dissonance. Either the smart moneyâs loading up for a squeeze, or leverage is about to get liquidated into oblivion.
Meanwhile, Wall Street analysts are still trying to explain Bitcoinâs 'volatility'âas if their 0.05% yield-chasing portfolios arenât the real risk. Bring popcorn.
Longs build as Bitcoin perpetual prices outpace spot
At the same time, Binance data shows the price of bitcoin perpetual contracts has risen above the spot market. This positive spread, as noted by CryptoQuant analyst BorisVest, suggests growing long-side pressure as traders bet on upside during intraday moves.
Earlier this week, Bitcoin briefly spiked from $116,000 to $120,000, triggering FOMO among retail traders who rushed to open long positions. However, this $120,000 level acted as resistance. Larger market participants used it to place sell orders, which pushed the price back down.
This pattern indicates that traders are reacting swiftly to price changes and entering positions without waiting for definitive confirmation, even though funding rates are still close to neutral. As a result, the market is more susceptible to immediate responses.
Bitcoin technical indicators point to weakening momentum
On the daily chart, Bitcoin has slipped below the middle line of the 20-day Bollinger Bands, now at $116,305. The price is getting closer to the lower band at about $109,000, which may serve as temporary support. Further selling could be triggered by a clean break below this level.
The relative strength index has fallen from recent highs to 52.58, indicating that the bullish momentum is waning. A deeper retracement toward $109,000 or lower is more likely if Bitcoin is unable to quickly recover the $116,000â$117,000 range.
On the upside, a recovery above $120,000 WOULD indicate that buyers are taking back control and selling pressure is easing.