An analyst predicted a correction in Bitcoin amid rising OI.

Open interest in options on the world's first cryptocurrency has reached record levels. BRN's head of research, Timothy Misir, warned of rising volatility, The Block reports.

At the time of writing, Bitcoin is trading around $109,400, “testing investor patience” below the buy price of short-term market participants, the expert noted. He outlined the intraday range between $109,500 and $107,200.

Binance BTC/USDT hourly chart. Source: TradingView.

Correction risks

According to Misir, the options market has come to the fore. Open interest has reached a new all-time high, and dealers are seeing increased demand for puts.

The analyst warned that this situation forces major players to constantly adjust their positions. This could cause sharp price surges even with small market movements.

Digital gold has already failed to break $113,000 several times, triggering selling from weak hands. If the price falls below $108,000, it will trigger a more serious correction to $104,500, and ultimately to $97,000.

Misir emphasized that mixed investor sentiment has already impacted Wall Street. Bitcoin ETFs lost $101 million in the last trading session.

Source: SoSoValue.

$18.7 million was withdrawn from Ethereum-based instruments.

Source: SoSoValue.

QCP Capital experts also emphasized that the US government shutdown, now in its third week, has negatively impacted the market. Because of this, the country has postponed the release of several key economic data, including the Consumer Price Index, which is expected on October 29.

Experts believe that a 0.2% figure will support the upward momentum of the leading cryptocurrency.

As a reminder, Standard Chartered's head of digital asset research, Jeffrey Kendrick, predicted Bitcoin would fall to $100,000.

Source: cryptonews.net