The price action of Bitcoin over the past week was largely redemptive, as the premier cryptocurrency reclaimed its place above the psychological $100,000 mark. This recent burst of bullish momentum mirrors a healthily growing sentiment amongst investors.
On Friday, May 15, the Bitcoin price reached as high as $103,800 — its highest level since January. However, the latest on-chain data shows the absence of investor activity in the derivatives market, typically seen when BTC’s value hits this level.
Rising open interest is often considered a bullish signal for the premier cryptocurrency, especially as it suggests fresh capital influx into the market. Ultimately, this trend suggests improving investor sentiment and surging trader confidence.
According to data from Alphractal, the current aggregated OI for Bitcoin (valued at around $103,000) stands at an estimated $61.3 billion. The last time BTC was at this monumental price, the open interest was more than $68 billion.
In the post on X, Alphractal revealed other reasons why the flagship cryptocurrency’s price might be at risk of a short-term correctional movement. The relevant on-chain metric backing this bearish projection is the Whale Position Sentiment.
The Whale Position Sentiment metric tracks both the directional bias and trading behavior of large holders. It typically reflects the net positioning of whales, their market sentiment, and also changes in open positions.
Alphractal concluded that the drop in the Whale Position Sentiment reflects large investors’ interest in closing long positions, thereby shifting market sentiment. If the metric continues to drop, the on-chain analytics firm inferred that it could lead to price stagnation, or worse, a correction.
