$BTC

I see people saying that if open interest goes up while price moves sideways, it’s a bearish signal.
That’s simply wrong.
Rising open interest just means more people are opening positions, both longs and shorts. It does not tell you direction.
What it clearly shows is that positions are building while price is compressing. That leads to volatility expanding.
It’s not bearish or bullish, it means a bigger move is coming.