Binance Open Interest May Set Bitcoin On a Bullish Ride, Here’s Why

Bitcoin (BTC) USD is set for a bullish performance amid an intriguing divergence between price and Open Interest on Binance.

The Bitcoin Open Interest (OI) on Binance has recorded a series of lower lows, while the price indicates liquidation is fading.

However, demand for Bitcoin has dropped, raising speculations about a potential price decline.

The Binance OI and Bitcoin (USD) Divergence

Amr Taha, an analyst at the onchain data analytics platform, pointed out the Binance OI and Bitcoin divergence in a blog post.

According to the analyst, Bitcoin has shown a complex set of signals, especially on the Binance crypto exchange.

He posted a CryptoQuant chart that revealed declines in Bitcoin open interest on Binance. The slump in Bitcoin USD OI shows dwindling interest among investors in the futures derivatives market.

In contrast, BTC has formed consistent equal lows slightly above $104,000, as seen in the Binance BTC price and OI change chart.

Short liquidations were minimal, while long positions were closed forcefully.

Historically, BTC has shown bullish signals when paired with signs of liquidation exhaustion and fading open interest.

Notably, the Bitcoin divergence on Binance coincides with the Federal Reserve’s recent decision to keep interest rates unchanged. In the past, such a move usually preceded a sharp price rally in Bitcoin.

On Wednesday, the price of Bitcoin bounced slightly after Fed Chair Jerome Powell announced that rates would remain unchanged at 4.50%.

A pause in interest rates is a macroeconomic signal that often boosts cryptocurrencies like Bitcoin and other risk-on assets.

Bitcoin (USD) Demand from New Investors Slumps

While the Bitcoin OI on Binance and the slowing liquidations hint at a price rally, BTC is seeing reduced demand from new investors.

According to CryptoQuant data, new money into Bitcoin reduced substantially after the coin rallied towards $112,000.

Short-term holders (STH) now control 4.5 million BTC, down from 5.3 million BTC recorded on May 27, 2025.

Bitcoin USD demand in the spot market continues to grow. However, the expansion pace has decelerated and is now below trend.

Demand growth peaked at 228,000 BTC on May 27 and declined to 118,000 BTC in the past 30 days.

Investors in the futures market have sold Bitcoin to take profits and are now opening fresh short positions.

Traders sold Bitcoin to lock in profits after Bitcoin hit $110,000 and opened new short positions after falling to $105,000.

What Next for BTC Price: ATH or Slip to $94,000?

The dwindling BTC demand from STH and the OI on Binance sends mixed signals to investors.

On one hand, Bitcoin is expected to experience a significant price rally soon. Notably, if demand from STH weakens, BTC could find support close to $92,000.

The $92,000 level represents the traders’ on-chain realized price, a typical price support during bull markets.

However, if the $92,000 level fails, the next support is around $81,000, the lower band of the Traders’ On-chain Realized Price.

At press time, BTC was trading at $104,000, down 2% over the past day. The price increased to as high as $106,188 earlier in the day.

However, if BTC could recover and break a crucial barrier ahead, it could soon reclaim its All-Time High (ATH) or even higher despite current consolidation paths.

Robert Kiyosaki, the renowned author of Rich Dad Poor Dad, has once again reiterated his $1 million Bitcoin prediction.

The author based his prediction on the asset accumulation rather than short-term price movements.