Bitcoin [BTC] Open Interest Delta Signals a New Bull Run Might Be Brewing

Bitcoin's [BTC] Open Interest Delta exhibited signs that might feel familiar to experienced traders. The 30-day consolidated Delta reached levels

Bitcoin [BTC] Open Interest Delta is displaying familiar signs for experienced traders. The 30-day consolidated Delta has reached levels last seen when Bitcoin crossed $73K on its way to new highs in 2024.

Now, as the same pattern emerges across derivatives metrics, it might be signaling another pivotal moment in the cryptocurrency’s price journey.

Two phases of the Open Interest (OI) cycle are usually discussed by analysts. Phase 1 is characterized by the rapid accumulation of positions, which is reflected in a positive Delta. Subsequently, Phase 2 occurs as the positions begin to unwind, reversing the Delta into negative territory. This back-and-forth process showcases a rhythm of leverage and sentiment.

Data from Alphractal indicates that we may be entering Phase 1 again. As observed in previous Bitcoin bull runs, the pace and form of this trend are being closely monitored.

Examining the 180-day OI Delta provides further insight. In the past, abrupt declines in Bitcoin Delta have foreshadowed substantial liquidations, typically wiping out over-leveraged long positions. These events are often observed at market bottoms.

At present, the 180-day Delta is oscillating around zero. A slip into red could herald the commencement of another accumulation phase. This transition is usually witnessed as large investors begin their quiet buying activities.

Over the past two years, similar shifts in Delta have preceded major Bitcoin rallies, such as those witnessed in October 2023 and early 2024. During those periods, aggressive OI spikes indicated strong upward pressure on the cryptocurrency.

However, this time, a variation in the pattern can be observed. OI has not risen as sharply, which might indicate that large players are proceeding with more caution. This behavior aligns with how whales are typically known to operate—they drive market momentum but withdraw strategically, rendering their movements significant to observe.