Binance OI Spikes: Is Bitcoin Gearing Up for a Clean Break or Brutal Shakeout?

Key Points

1. Bitcoin's open interest (OI) on Binance has risen to approximately $13.7 billion, approaching mid-to-late July highs, signaling heightened speculative activity.

2. A faster rise in OI compared to price increases market leverage, raising the risk of a long squeeze if prices decline.

3. The $119,000-$120,000 range is a critical resistance zone; a breakout could push prices toward $122,000-$124,000, but the move remains fragile.

4. Network growth is high at 82, while liquidity is mid-range at 52, suggesting potential for a late-stage top and pullback.

5. Continued price discovery depends on improved liquidity, with traders closely monitoring whether Bitcoin can sustain above $120,000 to confirm a breakout.