Bitcoin’s open interest on Binance has climbed to roughly $8.9 billion, a 40% increase over the past 82 days. Data from CryptoQuant, analyzed by Finbold, shows Bitcoin’s OI rose by $2.56 billion between early March and May 22. The metric now sits above its 180-day moving average, which may signal the end of a deleveraging event that began after the October crypto crash.
Analyst Darkfost from CryptoQuant noted that a deteriorating macro environment, combined with Bitcoin’s sharp correction, drew in speculative traders hoping for a rebound. The rising OI is notable, but it doesn’t guarantee a price surge.
Funding Rates Turn Positive
Alongside the OI spike, Bitcoin’s funding rates on Binance have turned positive, according to CoinGlass data. Positive funding rates suggest bullish sentiment, as traders are willing to pay a premium to hold long positions. Historically, this has preceded price increases, but it’s not a foolproof signal.
Still, Bitcoin could potentially climb back above $80,000 if the trend holds. But there’s also a risk of a long squeeze, which can trigger rapid price declines when long bets unwind.
AI Prediction Points to Short-Term Drop
At press time, Bitcoin was trading around $77,145. The Finbold AI Agent, an analytical tool, predicts a 2.34% drop to $75,343 by May 29. That would be a short-term dip, perhaps caused by leveraged positions being liquidated. If Bitcoin manages to reclaim the $80,000 level in the coming days, the combination of rising OI and positive funding rates could fuel further bullish momentum.
In short, the market is a bit split. The rising OI and positive funding rate lean bullish, but the near-term AI forecast suggests caution. Traders might want to watch for a breakout above $80,000 or a failure to hold $75,000, as both could define the next direction.
