- Bitcoin’s price recently recovered, hovering above $91,000, as the market enters a cautious optimism phase.
- Open Interest rose, yet FOMO levels and Open Interest volume remain subdued.
Bitcoin’s [BTC] price has shown encouraging signs of recovery after a notable dip in recent weeks. On the 5th of March, the leading cryptocurrency reclaimed the $90,000 psychological price level, surging by almost 10% in a single day.
By the early hours of the 6th of March, Bitcoin hit a peak of $92,756 before undergoing a minor retracement.
At the time of writing, Bitcoin was trading at $91,325, reflecting a daily increase of 4.1%. Despite these gains, analysts believe the market has not yet reached a widespread state of fear of missing out (FOMO).
Optimism builds, but FOMO lags
According to a CryptoQuant analyst known as Woominkyu, the current market sentiment does not reflect the levels of excitement often seen before a major rally.
The analyst referenced the ‘Fear & Greed Index’, a metric that tracks market sentiment using a 30-day Moving Average, to explain the current mood.
Historically, Bitcoin entering the ‘Optimism’ stage of the index has often indicated a potential rally approaching.
However, the ‘Euphoria’ stage, characterized by excessive market optimism, has typically been followed by sharp price corrections.
Source: CryptoQuant
Woominkyu pointed out that, as of now, Bitcoin has just entered the ‘Optimism’ stage. This stage typically serves as a critical juncture, prompting market participants to closely watch for signs of an impending surge or the risk of a correction. The analyst wrote:
At the time of writing, Bitcoin entered the ‘Optimism’ Stage, a crucial phase to watch closely based on past market patterns. Will history repeat itself, or are we entering a new market paradigm?”
Bitcoin’s current market stance based on Open Interest
Beyond sentiment indicators, additional metrics shed light on Bitcoin’s current market position.
Coinglass data revealed a 6.5% increase in Bitcoin’s Open Interest (OI)—the total value of active derivative contracts—in the past day. Now at $51.38 billion, this rise suggests that more traders are entering the market, likely expecting upcoming price shifts.
Source: Coinglass
Interestingly, OI volume has shown a different trend, declining by 7.36% to 106.79 billion during the same period.
This drop suggests a potential shift in trading activity, with fewer contracts being actively traded despite the rising overall valuation. The contrast between OI value and volume underscores the complex dynamics shaping the current Bitcoin market.
