Earlier this week turned out to be bullish Bitcoin After weeks of robust volatility, we have limited the price to the $90,000 level. The BTC price has temporarily acquired an upside-down move, but its open interest indicates a significant weakness that could be pulled back.
A sudden decline in open interest in Bitcoin
Bitcoin Market Dynamics Some important metrics show negative trends, which could lead to dramatic shifts. Decreasing performance along with recent price movements for these metrics increases the risk that BTC will further decline in key support levels.
As prices rise slightly, Alphractal, an advanced on-chain data and investment platform, It has been reported Bitcoin’s open interest (OI) has witnessed a sharp decline. BTC’s open decline in profits indicates a shift in market sentiment as investors retract their position in the face of ongoing volatility.
Furthermore, this reduction Open interestwhich usually serves as a sign of speculative activity and reduces leverage, which can lead to price fluctuations in the short term. As metrics decrease, it becomes difficult to determine the next price for BTC, leading investors to adopt a strategic approach.
Data from the on-chain platform shows open interest has exceeded $7.4 billion in the last seven days. The drop was recorded between all crypto exchanges except Hong Kong-based trading platform Bitfinex, and experienced a slight increase.
Alphractal was also highlighted Large-scale liquidation of leveraged locationstriggers Monday volatility. If this trend continues, it will reduce confidence among derivative traders and affect BTC’s short-term price outlook.
Bitcoin’s open profits have declined sharply, but despite these sales, the aggregated funding rate remains in positive territory. Such developments suggest that longer positions continue to dominate at current price levels.
Long-term BTC holders have added their holdings
Amid a decline in BTC’s open interest, long-term investors have shown confidence in their flagship assets. It has been reported Darkfost, on-chain and technical experts. Over the past 30 days, long-term holders have purchased over 159,000 BTC, reflecting their strong interest in their assets.
According to experts, these Long term holders Bitcoin is accumulating despite recent volatility, which is a sign of market growth. This is a positive sign, but DarkFost said it doesn’t always indicate that there is always a bottom.
This is because there are these Accumulation period It can last for several months similar to the market stage. Market uncertainty, on the other hand, is caused by worsening macroeconomic climates and political issues like President Donald Trump’s initiative.
At the time of writing, BTC It trades at $85,107, indicating an increase of over 3% over the last 24 hours. Bitcoin trading volume has fallen by more than 1%, suggesting new bearish sentiment.
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