This gauge tells you whether the movement #البيتكوين is real or just noise.
Most people look at the price first. This is natural, but the price alone does not tell you why the movement is happening.
Open interest is what tells you.
When #Bitcoin is sold at a high price and the open interest decreases along with it, as we see here, it usually means closing futures positions. Leverage is being taken out of the system. Traders are being wiped out or are stepping aside. Spot position holders do not rush to exit.
This is an important distinction.
Real selling looks different. You see the price decrease while the open interest remains high or even increases. This is distribution.
Fragile movements are the spikes where the price goes up and the open interest goes up. This is the leverage chasing momentum. It looks bullish on the surface, but it rarely holds without a reset.
Open interest is not a crystal ball; it is a truth detector.
It tells you whether the market is moving due to derivatives or if it is actually moving because of real money trading.
#BTC86kJPShock #USChinaDeal #FOMCWatch
