• Bitcoin’s performance in 2023 has brought confidence back into the crypto market, but investors should be aware of the possibility of a pullback.
• Open Interest (OI) levels are still low, with the funding rate remaining positive.
• CryptoQuant analyst Professor Satoshi predicts there could be a potential continuation of the bull trend, but investors should not write off the possibility of a drawback.
The crypto market has witnessed a resurgence of confidence since the start of 2023 with Bitcoin [BTC] leading the charge. This has been further bolstered by the bullish trend that the king coin has found itself in since the start of the year. However, while investors have been elated by the profits they’ve seen, it is important to remain aware of the possibility of a pullback.
Open Interest (OI) is one of the key indicators used to gauge the level of participation in the market. OI is described as the number of long or short positions opened by traders in the derivatives market. CryptoQuant analyst Professor Satoshi has noted that the current OI levels are still low compared to those seen in 2021, but the funding rate has remained positive. This could potentially lead to a continuation of the bull trend.
However, Professor Satoshi also warned investors not to write off the possibility of a drawback. The king coin has found it difficult to surge beyond the $21,100 region in the last 24 hours, which could be a sign of a potential pullback. The Bitcoin fear and greed index has also seen highs in months, meaning that the coin will need increased demand to sustain its rally.
Overall, investors should be mindful of the potential downside risk while also keeping an eye out for opportunities to capitalize on the upside. While the current picture looks positive, it is important to remain vigilant and keep the possibility of a pullback in mind.