Key Points
- Bitcoin’s futures open interest has reached its highest level in 16 months, signaling increased market activity.
- Despite significant resistance at the $70,000 price level, Bitcoin’s funding rate across exchanges remains positive.
Bitcoin’s future open interest, which is the total number of outstanding futures contracts or positions that have not been settled or closed, has reached a 16-month high. According to data from on-chain data provider Coinglass, the aggregate futures open interest for Bitcoin climbed to 516k BTC on 29th May. This is the highest level since January 2023, indicating a surge in market activity and a positive shift in traders’ sentiment.
Bitcoin’s Funding Rate Remains Positive
Even as Bitcoin faces significant resistance at the $70,000 price level, its funding rate across cryptocurrency exchanges remains positive. Funding rates are used in perpetual futures contracts to ensure the contract price stays close to the spot price. A positive futures funding rate signals a strong demand for long positions, suggesting potential for continued price growth. At press time, according to Coinglass data, Bitcoin’s funding rate was 0.0106%.
Bitcoin has been trading close to its 20-day Exponential Moving Average over the past week, indicating market consolidation. This is confirmed by its declining Average True Range (ATR), which measures price volatility over a chosen period. A downward trend in the ATR may be interpreted as a sign of consolidation. At press time, Bitcoin’s ATR was 2,373, a nearly 10% decrease over the last week.
Indicators Show Market Balance
The values of Bitcoin’s Relative Strength Index (RSI) and Money Flow Index (MFI) at press time were 53.85 and 57.94, respectively. These values suggest that neither buyers nor sellers are in full control as the price of Bitcoin continues to consolidate or fluctuate within a range.
