Euphoria. Let's look at the open interest level

How close are we now to it and to the big dump?

There is a lot of talk now that the market is now overheated. That people are buying Bitcoin out of euphoria in anticipation of Etf approval.

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But is this really so? Let's look at the open interest level.

What is this anyway? Open interest is a measure of the amount of money invested in Bitcoin derivatives at a given point in time. That is, this is the sum of all shorts and longs in futures and options.

If we look at history, we have an interesting pattern: every time the amount of open interest reaches the level of 4.7 billion, we see a DAMP. The market hits you on the head every time as soon as traders feel impunity and begin to greedily accumulate long positions with leverage. I remember absolutely all of these dumps. And this doesn't mean that the market was at its best.

Our greed awoke at the level of 20k, then everyone was absolutely sure that the bottom had been passed, because Bitcoin pushed off the price of 20k 8 times and began to grow 8 times again.

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What happened on April 10, as well as in June and July of this year, the situation there is even clearer. We went over 30k, euphoria, sideways, dump.

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Now let’s look at where this open interest is now. The current situation cannot exactly be called euphoria. Open interest is not growing, but is even slightly corrected.

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https://preview.redd.it/4nmyr81aqpxb1.png?2828&format=png&auto=webp&s=6ac8d91da1416603949cfed78c9501e1ac25fce0

This does not mean that we cannot see some kind of correction. This more suggests that the market is still far from euphoria. And if we expect a big dump, it will only be when open interest reaches 4.72 billion. I wonder if this information can be used to write an indicator or a trading bot, or perhaps platforms such as Bitsgap are already using this.

And this could be at 38k or 42k, and perhaps even higher. Then when people believe in a bull market and begin to greedily buy Bitcoin at any price.

Do you usually pay attention to open interest?