Analyst Predicts Bitcoin Correction Amid Rising Open Interest

Open interest in Bitcoin options hits record highs, warns of volatility.

Open interest in options for the leading cryptocurrency has reached record levels. Timothy Misir, head of research at BRN, warned of increased volatility, reports The Block. 

At the time of writing, Bitcoin is trading around $109,400, “testing investors’ patience” below the purchase price of short-term market participants, the expert noted. He identified an intraday range between $109,500 and $107,200.

Correction Risks 

According to Misir, the options market has come to the forefront. Open interest has reached a historic high, and dealers are facing increased demand for puts. 

The analyst warned that this situation forces major players to constantly adjust their positions. This could cause sharp price swings even with small market movements.

Digital gold has failed several times to break through $113,000, prompting sales from “weak hands.” If the price falls below $108,000, it could trigger a more significant correction to $104,500, and eventually to $97,000.

Mixed investor sentiment has already been reflected in Wall Street’s behavior, Misir emphasized. At the end of the latest trading session, Bitcoin-ETF lost $101 million. 

Ethereum-based instruments saw an outflow of $18.7 million. 

Experts at QCP Capital also highlighted that the ongoing U.S. government shutdown, now in its third week, has negatively impacted the market. It has delayed the release of several key economic data, including the Consumer Price Index, expected on October 29. 

Specialists believe that a figure of 0.2% will support the upward momentum of the leading cryptocurrency. 

Earlier, Jeffrey Kendrick, head of digital asset research at Standard Chartered, predicted a drop in Bitcoin to $100,000.