Divergence in open interest , time to pump
Updated
Typically, after a significant price drop, if we observe a decrease in open interest while the price rises, it often indicates that short sellers are closing their positions. Open interest refers to the total number of outstanding contracts, including both short and long positions. When short sellers close their positions, they buy back the asset to cover their shorts, which can contribute to the price increase and open interest decrease. This reduction in open interest suggests a decrease in bearish sentiment as traders exit their short positions.
I expect a pump soon, I marked previous instances of this event on the chart.
The amount of the pump is also proportional to how long we stay in the base—the longer it takes, the higher we go.
I expect a pump soon, I marked previous instances of this event on the chart.
The amount of the pump is also proportional to how long we stay in the base—the longer it takes, the higher we go.
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Zoomed-in view, in case it's not very obvious in the chart above
Trade active
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We will have a FOMC press conference in a couple of hours I guess the chart is screaming "buy" for some reasons related to this event, I hope it's not a false signal 🫡Trade closed: stop reached
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That trade failed because of Israel news but right now we have an even bigger divergence, I guess we are about to start the main BTC bull run toward 100kNote
Maybe a little more push to the downside to fill the CME gap at 58k and then start of the big rallyNote
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Well the pump started with the current level of open interest we might see 67k soon
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