According to Glassnode data, open futures interest and futures forecast leverage metrics have reached their highest levels in more than a month, signaling an impending Bitcoin surge.
Open Interest, known as OI, is an open interest indicator. Each long or short position opened in leveraged markets is worth +1 for OI. Also, Open Interest is often used in conjunction with the volume indicator. The futures open interest metric reflects the USD value of the total amount of funds allocated in open futures contracts.
The chart above shows the open interest of Bitcoin futures on a daily basis since October 17. As of December 30, the metric has surpassed 500,000 BTC, marking its highest level in more than a month.
Futures Estimated Leverage Ratio is a metric that represents the ratio between the open position in futures contracts and the balance of the corresponding exchange. Estimated leverage fell as low as 0.3 on Dec. 5 after the FTX crash. However, it started to recover rapidly after 12 December. The rate has increased by almost 10% in 20 days, hitting 0.34 on 30 December.
In addition to metrics pointing to potential volatility, data from Binance shows that Binance will contribute to price fluctuations. A short liquidation cluster formed on Binance between $16,650 and $16,940.