Bitcoin News Today: Bitcoin Price Rises 6 Weekly With Open Interest Near $13.7 Billion

Bitcoin’s price has risen nearly 6% over the past week, with a 1.8% gain in the last 24 hours, currently trading at $120,499 and approaching a key resistance range of $119,000 to $120,000 [1]. Concurrently, open interest (OI) for Bitcoin futures on Binance has climbed to approximately $13.7 billion, nearing levels seen in mid-to-late July [1]. This metric reflects the total value of outstanding futures contracts and is often used to gauge speculative activity and potential price volatility. The synchronized rise in price and open interest suggests new liquidity is entering the market, likely from traders taking long positions [1].

Arab Chain, a contributor to CryptoQuant, notes that when both price and open interest increase simultaneously, it often signals speculative optimism, particularly in the derivatives market [1]. However, this dynamic also increases the market's sensitivity to corrections. If open interest continues to outpace price growth, the market could become overleveraged, making it vulnerable to a long squeeze should a sharp pullback occur [1].

Historically, the $119,000–$120,000 range has served as a pivotal level for Bitcoin. A breakout above it with stable or slightly declining open interest could indicate the move is driven by spot buying or short covering, reducing liquidation risks [1]. In such a scenario, Bitcoin could target the $122,000–$124,000 range. Conversely, a sharp rejection at these levels with elevated open interest could trigger liquidation-driven declines toward nearby support [1].

Open interest is currently just below the all-time high of approximately $14 billion, leaving limited room for further leveraged accumulation before reaching historic extremes [1]. Following a decline in both price and OI from late July to early August—suggesting capital was being withdrawn from the market—both have since rebounded, signaling renewed confidence among derivatives traders [1].

Arab Chain cautions that a significant rise in open interest without a matching price increase, or worse, a price decline, would indicate an overleveraged environment [1]. On the other hand, price stability or gains above $120,000 with steady or slightly declining open interest would be a healthier sign, suggesting the move is driven by actual buying rather than speculative leverage [1].

At present, the intraday trend for Bitcoin remains bullish, but the sustainability of this move depends on whether leverage levels stabilize as Bitcoin tests critical resistance [1]. Traders are likely to closely monitor BTC’s behavior around the $120,000 level in the coming days, as open interest dynamics could serve as a key signal for the next major price movement [1].

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[1] https://www.newsbtc.com/bitcoin-news/bitcoin-price-and-futures-leverage-climb-together-heres-why-that-matters/