Bitcoin futures open interest reaches a record high of $88.7 billion, analysts warn of potential large-scale leveraged liquidations

According to ChainCatcher, citing CoinGlass data, the total open interest (OI) of bitcoin futures across the entire network reached a historic high of $88.7 billion today. Currently, the price of bitcoin is consolidating around $120,000.

The record-breaking open interest indicates an excessively high level of leverage in the derivatives market. Trader BitBull predicts that both bitcoin and altcoins will experience a "large-scale leverage liquidation" within the next 1-2 weeks. He believes that the liquidation will force some traders to sell, but after that, the market will rebound and reach new highs. Other analysts have differing views. Trader CrypNuevo believes the upward target is around $123,200. Meanwhile, trader Roman points out bearish divergence on the daily and weekly charts, warning of the risk of weakening momentum. CoinGlass data shows that current support liquidity is mainly concentrated around $118,500.