bullish

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Impact

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Coin

About 7,000 <a href="https://www.thecoinrepublic.com/price-prediction/bitcoin/">Bitcoin</a> (BTC) open interest was added to Binance futures, which was a sign of more volatility to come. That, however, led to a 6-month spike in volatility. 
<h2 class="wp-block-heading" id="h-bitcoin-btc-open-interest-and-its-impact-on-volatility">Bitcoin (BTC) Open Interest and Its Impact on Volatility</h2> 
Analysis of the 5-minute BTC/USDT chart from Binance Futures showed a 7K BTC increase in OI, which raised the value to 308.79K BTC at $19.6 Billion. 
Bitcoin price grew to $87,441.20 from $83,000 when OI surged to 308.79K BTC and simultaneously increased 7K BTC. It represented a 5.4% increase. 
The surge in OI was deduced from the heightened trading volume, coinciding with a positive Funding Rate of 0.003081%. 
It indicates a bullish investor attitude in this market. The price rise closely matched the ΟΙ increase, suggesting new position openings drove market buying activity. 
<figure class="wp-block-image size-large">
 <img loading="lazy" decoding="async" width="1024" height="442" src="https://www.thecoinrepublic.com/wp-content/uploads/2025/03/image-893-1024x442.png" alt="BTC open interest | Source: CoinGlass" class="wp-image-1091806" srcset="https://www.thecoinrepublic.com/wp-content/uploads/2025/03/image-893-1024x442.png 1024w, https://www.thecoinrepublic.com/wp-content/uploads/2025/03/image-893-300x129.png 300w, https://www.thecoinrepublic.com/wp-content/uploads/2025/03/image-893-768x331.png 768w, https://www.thecoinrepublic.com/wp-content/uploads/2025/03/image-893-1536x663.png 1536w, https://www.thecoinrepublic.com/wp-content/uploads/2025/03/image-893-150x65.png 150w, https://www.thecoinrepublic.com/wp-content/uploads/2025/03/image-893-696x300.png 696w, https://www.thecoinrepublic.com/wp-content/uploads/2025/03/image-893-1068x461.png 1068w, https://www.thecoinrepublic.com/wp-content/uploads/2025/03/image-893-1920x829.png 1920w, https://www.thecoinrepublic.com/wp-content/uploads/2025/03/image-893.png 1965w" sizes="auto, (max-width: 1024px) 100vw, 1024px">
 <figcaption class="wp-element-caption">
 BTC open interest | Source: CoinGlass
 </figcaption>
</figure> 
Historically, similar OI increases often triggered market shifts and volatility. During October 2023, a 5K increase in OI initiated a 10% price rise that lasted 2 days, while a 7K increase in 2021 saw 15% gains in one week. 
However, the termination of OI positions at a rapid rate could lead to a market pullback to $85,000. 
The rise in OI coincided with an increase in Bitcoin volatility, reaching 52.31% for 30-day periods. It was this quarter’s highest, as the “BTC Volatility (365d)” chart depicted. 
Market volatility was at its lowest point at 24.79% from February 17th to 24th. BTC’s increasing market activity coincided with this volatility peak registered during its steep price rise. 
<div class="wp-block-image"> 
 <figure class="aligncenter size-large">
 <img loading="lazy" decoding="async" width="1024" height="456" src="https://www.thecoinrepublic.com/wp-content/uploads/2025/03/image-129-1024x456.jpeg" alt="Bitcoin volatility | Source: IntoTheBlock" class="wp-image-1091796" srcset="https://www.thecoinrepublic.com/wp-content/uploads/2025/03/image-129-1024x456.jpeg 1024w, https://www.thecoinrepublic.com/wp-content/uploads/2025/03/image-129-300x134.jpeg 300w, https://www.thecoinrepublic.com/wp-content/uploads/2025/03/image-129-768x342.jpeg 768w, https://www.thecoinrepublic.com/wp-content/uploads/2025/03/image-129-1536x684.jpeg 1536w, https://www.thecoinrepublic.com/wp-content/uploads/2025/03/image-129-150x67.jpeg 150w, https://www.thecoinrepublic.com/wp-content/uploads/2025/03/image-129-696x310.jpeg 696w, https://www.thecoinrepublic.com/wp-content/uploads/2025/03/image-129-1068x475.jpeg 1068w, https://www.thecoinrepublic.com/wp-content/uploads/2025/03/image-129.jpeg 1692w" sizes="auto, (max-width: 1024px) 100vw, 1024px">
 <figcaption class="wp-element-caption">
 Bitcoin volatility | Source: IntoTheBlock
 </figcaption>
 </figure>
</div> 
Previous price fluctuations followed these peaks of volatility in market history. The market saw a 50% volatility spike, which resulted in a 20% price decline in 2021 and the 2023 CPI price rise to $110,000 before a follow-on 10% market adjustment to $85,000. 
Core PCE data release could drive BTC prices as high as $110,000 and volatility as high as more than 60%. However, less favorable outcomes would most likely initiate $85,000 price drops. 
Scalp traders have the opportunity to capitalize on these conditions through enormous risks and rewarding opportunities. 
<h2 class="wp-block-heading" id="h-bitcoin-price-action-and-prediction">Bitcoin Price Action and Prediction</h2> 
Looking at the price action, Bitcoin maintained an ascending bottom pattern in the market. That sustained bullish momentum as it reached the $85,000 resistance threshold. 
The price escalated progressively from $80,000 to its summit at $87,441.20 while creating new higher highs at $80,000, $82,000, and $84,000. 
Despite the strength of this pattern, Bitcoin needs to stay above the $85,000 resistance mark, which proved resistant on multiple occasions. 
<div class="wp-block-image"> 
 <figure class="aligncenter size-large">
 <img loading="lazy" decoding="async" width="1024" height="546" src="https://www.thecoinrepublic.com/wp-content/uploads/2025/03/image-892-1024x546.png" alt="BTC/USDT 4-hour chart | Source: TradingView" class="wp-image-1091797" srcset="https://www.thecoinrepublic.com/wp-content/uploads/2025/03/image-892-1024x546.png 1024w, https://www.thecoinrepublic.com/wp-content/uploads/2025/03/image-892-300x160.png 300w, https://www.thecoinrepublic.com/wp-content/uploads/2025/03/image-892-768x409.png 768w, https://www.thecoinrepublic.com/wp-content/uploads/2025/03/image-892-1536x819.png 1536w, https://www.thecoinrepublic.com/wp-content/uploads/2025/03/image-892-150x80.png 150w, https://www.thecoinrepublic.com/wp-content/uploads/2025/03/image-892-696x371.png 696w, https://www.thecoinrepublic.com/wp-content/uploads/2025/03/image-892-1068x569.png 1068w, https://www.thecoinrepublic.com/wp-content/uploads/2025/03/image-892-1920x1023.png 1920w, https://www.thecoinrepublic.com/wp-content/uploads/2025/03/image-892.png 2000w" sizes="auto, (max-width: 1024px) 100vw, 1024px">
 <figcaption class="wp-element-caption">
 BTC/USDT 4-hour chart | Source: TradingView
 </figcaption>
 </figure>
</div> 
The analysis suggested a temporary correction could precede an expected price rise. An increase in selling pressure might cause BTC price to drop to either $82K or $80K before continuing its uptrend. 
The price of Bitcoin should stay above $85,000 to achieve $90,000 by the end of the week under ongoing bullish market conditions. 
The upward trend remained intact based on the rising support levels, though $85,000 was established as the main steering point for market movement. 
The post <a href="https://www.thecoinrepublic.com/2025/03/25/7k-btc-open-interest-added-on-binance-volatility-hits-6-month-high-whats-next/">7K BTC Open Interest Added On Binance, Volatility Hits 6-Month High—What’s Next?</a> appeared first on <a href="https://www.thecoinrepublic.com">The Coin Republic</a>.

7K BTC Open Interest Added On Binance, Volatility Hits 6-Month High—What’s Next?

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