Traders are trying to solidify the foundation of $ 16,500 USD on Bitcoin's valuation.

Currently, as of November 13, Bitazu Capital founding partner Mohit Sorout noted that the open interest in Bitcoin futures is at an all-time high. This means that the chances of higher volatility in the short term should not come as a surprise.

Sorout said the "festival of liquidation" has not started, referring to Bitcoin's tendency to see cascading liquidations after large price movements. Said:

"The aggregate open interest of BTC futures and perpetuals has hit a new all-time high. The settlement festival hasn't even started."

The rest of the Bitcoin derivatives market is seeing a similar increase in trading activity and open interest.

The term "open interest" refers to the sum total of contracts that are actively open in the futures market. If the open interest is high, it means that there are a large number of traders betting on the price action of Bitcoin. The price of Bitcoin (BTC) is proving to be relatively stable at the $ 16,000 level, far outperforming both safe and risky assets, including gold and stocks. But in the short term, the digital asset faces a major hurdle in the form of whales.

However, this could leave Bitcoin and the wider market vulnerable to a sell off by whales. High net worth individual investors who own large amounts of BTC are known as whales and prefer to sell when there is plenty of liquidity.

Likewise, it is expected that despite these conditions, the upcoming performance of Bitcoin will depend on the momentum of open interest, which could make it reach 18,000 USD