Market Overview
Bitcoin’s trading landscape has witnessed a dramatic shift as open interest (OI) plummeted 22% in just 10 days, dropping from 327K BTC to 255K BTC. This significant reduction comes amid heightened market volatility and President Trump’s unexpected announcement of a U.S. Strategic Crypto Reserve, which briefly pushed BTC to $95,000.
Technical Analysis
The sharp decline in open interest suggests a major market reset could be underway. Key levels to watch include:
- Immediate Resistance: $90,000
- Critical Support: $85,000
- Secondary Support: $80,000
The current price action at $89,700 represents a crucial juncture for Bitcoin’s next directional move. Technical indicators suggest oversold conditions on lower timeframes, potentially setting up for a relief rally.
Market Implications
The 22% reduction in open interest typically signals one of two scenarios:
- A healthy market reset clearing overleveraged positions
- Declining trader confidence leading to position closures
SPONSORED
Trade Bitcoin with up to 100x leverage and maximize your profit potential
Expert Outlook
Market analysts remain divided on Bitcoin’s next move. While some view the OI reduction as a bearish signal, others interpret it as a necessary cleanup before the next leg up. The coming days will be crucial in determining whether BTC can reclaim the psychological $90,000 level and potentially target new all-time highs.
Source: CryptoQuant Data