Long-Term Holders And Derivative Market Traders See Opportunity With The Current Bitcoin Price

This is an opinion editorial by Mike Ermolaev, head of public relations at the ChangeNOW exchange.

As a retail trader or someone who just got started with bitcoin not long ago, you may be searching for clues about what to expect next with its price. A second opinion is also important for seasoned bitcoin investors to compare their own perspectives.

Analyzing Open Interest Of Bitcoin Futures

Bitcoin open interest provides insight into how much money is flowing into and out of the bitcoin derivatives market. Derivatives like bitcoin futures and perpetual swaps are used by traders to speculate on whether bitcoin’s price will rise or fall without having to own the digital asset. A higher bitcoin open interest means more traders have opened positions, while a lower one means more traders have closed them.




Long-Term Holders See Bitcoin As An Appealing Risk/Reward Investment

Below is another chart that visualizes how long-term BTC holders feel about bitcoin relative to its price. Bitcoin’s long-term holders are generally better at identifying the best time to buy and sell bitcoin. This is not surprising, since they have more experience in the field than newcomers who are just getting started. It is important to recognize when they are confident that the number one cryptocurrency will rise in price in the future.


The reserve risk chart is currently in the green zone, meaning a high level of confidence combined with a low price, making bitcoin an attractive risk/reward investment. Investors who invest during green reserve risk have historically enjoyed high returns over time.


Market perceptions of various savvy market participants, who have traditionally been smart in making their investment decisions, show that they are increasingly confident about the future of bitcoin price and are willing to take on more price risk. There is a cautious upward bias in bitcoin derivatives markets and long-term investors appear to be fairly confident. The bitcoin price is also showing signs of improvement based on technical indicators.

Disclaimer: This is not financial advice. All opinions, statements, estimates, and projections expressed in this article are solely those of Mike Ermolaev, PR Head at ChangeNOW.

This is a guest post by Mike Ermolaev. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc. or Bitcoin Magazine.