đ„ What is an Open Interest Flush in Crypto?
If youâre trading crypto, youâve probably heard the term âOpen Interest Flushââbut what does it really mean?
đč Open Interest (OI) Basics:
OI is the total number of active futures or perpetual contracts in the market.
Rising OI usually signals more traders entering positions, while falling OI can indicate exits or panic selling.
đč What is an Open Interest Flush?
It happens when a large number of positions are suddenly closed, often after a spike in leverage.
The result? OI drops sharply and the market can move violently in one direction.
Itâs usually triggered by stop-loss hunting or margin calls, clearing weak hands from the market.
⥠Why It Matters:
Traders can use it to spot trend reversals or catch explosive moves.
After a flush, the market often rebounds or continues its trend with stronger conviction.
đĄ Pro Tip:
Always watch price + OI togetherâa sudden OI drop with big price moves is a red flag (or opportunity) for a potential squeeze or liquidation cascade.
