BTC Open Interest has broken through resistance

Bitcoin price was half asleep.
It seems that now the dormant volcano has woken up.

Overview
Open interest is a traditional term used to quantify the total dollar value of investors' positions in a futures contract.
These positions can be long or short. For example, imagine that the Bitcoin futures contract has just opened and Alice buys $100.
At this point, both volume and open interest equal $100. So Alice decides she wants to sell her half of her position.
Therefore, by closing half of the market's open positions, open interest decreases to $50, while volume increases to $150.
Open interest aggregates all positions and gives traders an idea of ​​the dollar value that is at stake for a given contract.
For perpetual swaps, open interest can be held for an indefinite period, while for futures contracts, open interest reaches zero the moment a contract expires and usually starts to decline a few weeks before the settlement date.

How can I use it?

Similar to volume, open interest can be used to gauge trend strength.
For example, if open interest increases as the price increases, this indicates that more longs are being opened.
On the contrary, if prices increase and open interest rates decrease, it points to the weakening of the trend as derivatives traders' positions are being closed.
Therefore, the example above points to strong conviction among perpetual swap traders as the amount of open positions has increased along with the price of Bitcoin.

Source:
resources.intotheblo...futures/openinterest