Cryptocurrency analysis firm Alphractal highlighted a striking data imbalance in its latest analysis of Bitcoin. The firm reported that while Bitcoin’s price has fallen, open interest has risen, particularly on the Bybit exchange.
The following statements were included in the Alphactal analysis:
“Bitcoin’s open interest is increasing while the price is falling, which is unusual and the main contribution is from Bybit.”
While increases in open interest typically parallel price increases, Bybit’s open interest reached a new high in the last 24 hours, increasing by $1.52 billion, according to the analyst firm. This increase occurred despite the decline in the price of Bitcoin.
Alphractal noted that this pattern has been seen before on Bybit and can often signal increased speculative trading or aggressive shorting. According to the analysis, such divergences signal that the market may experience high volatility in the near term.
“If the price is falling while open interest is rising, it usually means one side is preparing for a squeeze,” Alphractal warned, urging investors to be cautious.
*This is not investment advice.