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

ChainCatcher news, according to CoinGlass data, the total amount of open interest (OI) for Bitcoin futures across the network reached a historic high of $88.7 billion today. The current Bitcoin price is consolidating around $120,000.

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