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OPEN INTEREST RISING = BULLISH? 📈
Not always.
Open Interest (OI)
means total active futures contracts
that are still open.
When OI goes up,
it means new positions are entering the market.
But direction?
Depends.
Scenario 1:
Price ↑ + OI ↑
→ New longs entering
→ Bullish confirmation
Scenario 2:
Price ↓ + OI ↑
→ New shorts entering
→ Bearish pressure building
Scenario 3:
Price sideways + OI ↑
→ Position buildup
→ Possible volatility soon
High OI means:
• More leverage in the system
• Higher liquidation potential
• Bigger squeeze possibility
Rising OI is not automatically bullish.
It simply means participation is increasing.
Smart traders watch:
– Is funding rate extreme?
– Is volume supporting the move?
– Are liquidations stacking on one side?
– Is price breaking structure?
OI shows fuel.
Price shows direction.
Don’t assume.
Confirm.
⸻
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