Bitcoin Price Starts Uptober With Record Open Interest Increase, BTC Rally Will Be Short lived?

The Bitcoin price is once again trading above $20,000, its 2017 all-time high, with bullish momentum on low timeframes. The cryptocurrency has been in a similar situation since losing this level early in 2022, leaving many traders to wonder if the bulls will be able to sustain the current price action. Related Reading: Thorchain Shows A Glimpse Of Hope, Are The Green Days Near? At the time of writing, the Bitcoin price trades at $20,100 with a 4% profit in the last 24 hours and a 5% profit in the last 7 days, respectively. Other cryptocurrencies in the top 10 by market capitalization are following Bitcoin with Binance Coin (BNB) outperforming the ranking recording an 8% profit over the same period. Bitcoin Price Open Interest Hints At Fresh Bear Assault? Data from Arcane Research shows that the Bitcoin price current price action has been followed by a spike of Open Interest (OI) in the derivatives sector. BTC futures contracts have been increasing since the start of October, as market participants bet on future appreciation for the cryptocurrency. As seen in the chart below, the OI denominated in BTC reached a monthly high of 464,500 BTC with the Bitcoin price rallying northbound to $20,000. The spike in OI as the price trends to the upside in October indicates that traders are taking long positions. As seen in the chart, this is not the first time this month that longs rushed into the price action. In Late September, OI skyro...