Bitcoin's sideways movement in the 8xK range is essentially a 'standoff period' between the bulls and bears, and the sustained high level of open interest is the 'firepower proof' of this contest. From the accelerated expansion at the end of November to the astonishing height in mid-December, every increase in open interest signifies an escalation in the confrontation between the bulls and bears.
From the perspective of contract market rules, the growth of open interest must be accompanied by simultaneous increases in both long and short positions, as there is no absolute advantage in a single direction. The current high level of open interest indicates that bulls are optimistic about a subsequent breakout, while bears are betting on continued sideways movement or decline, with both sides investing large amounts of capital to defend their positions. Previous rounds of shakeouts have already driven some indecisive bulls and bears out of the market, leaving behind traders who are highly confident in their own judgments. This high-intensity contest will not last long; when the financial strength or market expectations of one side change, the balance will be disrupted, and prices will break towards the advantageous side. For investors, it is important to focus on indicators such as the long-short ratio and funding rates to assess the strength changes of both sides, and to follow up promptly when a breakout occurs, avoiding being on the opposite side of the trend.@男神说币 #比特币流动性 $BTC
