Alphractal Analysis on Bitcoin

Cryptocurrency analysis firm Alphractal highlighted a striking data imbalance in its latest analysis of Bitcoin. The firm reported that while Bitcoin’s price has fallen, open interest has risen, particularly on the Bybit exchange.

Key Insights

• Open Interest vs. Price: “Bitcoin’s open interest is increasing while the price is falling, which is unusual and the main contribution is from Bybit.”

• While typically, increases in open interest correlate with price increases, Bybit’s open interest reached a new high in the last 24 hours, rising by $1.52 billion, despite the decline in Bitcoin’s price.

• Alphractal noted that this phenomenon has been observed before on Bybit and may indicate heightened speculative trading or aggressive shorting. Such divergences often signify potential market volatility ahead.

> “If the price is falling while open interest is rising, it usually means one side is preparing for a squeeze,” Alphractal warned, urging investors to exercise caution.

This is not investment advice.