Figure 5: OKEx BTC Long/Short Ratio
On the other hand, we’ve seen that some of the institutional investors may have started to close their books as the holiday season approaches. Data from Skew shows the decline in open interest in both CME and Bakkt Bitcoin futures after BTC prices rebounded to 7200 levels.
Figure 6: CME Bitcoin Futures Total OI
Figure 7: Bakkt Bitcoin Futures Total OI
It makes sense that money managers were closing out books for the end of the year in anticipation of finalizing their portfolios. The lower open interest could imply fewer price fluctuations in the short term, and it could also suggest the increased likelihood of prices stalling at current levels.
Conclusion
The post-rebound market remains highly liquid despite a slower-than-usual market due to the holiday factor. That’s why the upcoming developments, such as changes in metrics and trends, are especially important.
This post originally appeared on Medium. Read more.
Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involve significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.
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