I’ve also spoken about OI here, here’s a short explanation on what it means

OI stands for Open Interest, it is a key indicator to understand the market trends & liquidity

OI refers to the total number of positions open in a cryptocurrency contract. It tracks the total number of outstanding derivative contracts, either options or unsettled futures

It monitors the total number of currently active participants, rather than the total trading volume, which includes both open+closed positions

By keeping an eye on changes in OI, traders can assess the changing sentiment and possible future movements in the cryptocurrency futures market
For eg, if prices are rising along with an increase in open interest, it points to a strong trend and possible upward momentum

This alignment supports confidence in the general market sentiment and represents a consensus among market participants

Conversely, if OI increases in the face of declining prices, it suggests that the downward trend may continue

This alignment indicates ongoing selling pressure and traders’ agreement on the gloomy outlook

#crypto #cryptocurrency #bitcoin #cryptomarket #cryptotrading #cryptocurrencies #cryptoworld

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