Key Points
- Bitcoin Open Interest has dropped to a five-month low as traders de-risk amid volatility.
- A potential pullback is expected before Bitcoin potentially moves towards $90K.
Bitcoin’s derivatives Open Interest (OI) has reached a five-month low as traders are unwinding their positions amidst market volatility. Over the past two weeks, an estimated $14 billion in positions have been closed.
Bitcoin’s Market Performance
Bitcoin has seen a 10% rebound from its low of $78,000, reflecting a supply-side liquidity absorption. If Bitcoin moves to $86,729, it would put 591.93K addresses holding 379.52K Bitcoin into profit.
For Bitcoin to reclaim the $90K mark, it must absorb incoming liquidity before it becomes a resistance. However, extreme fear and macro uncertainty continue to suppress risk appetite.
Market Participation
With only 22K Bitcoin outflows from all exchanges at $86,103, the lowest in a week, retail participation remains low. Institutional capital also remains on the sidelines.
Subdued FOMO signals suggest it is too early to confirm a strong holding pattern, thereby keeping the possibility of a near-term breakout uncertain.
In the short term, $86,669 stands as a critical resistance level. If this level is breached, there is a $51 million liquidation risk.
A significant group of HODLers would move ‘in the money’ near this threshold. However, short-term holders remain vulnerable to profit-taking, making price stability a crucial test.
Weak spot demand, coupled with continued de-risking in derivatives, leaves Bitcoin vulnerable to another pullback before a potential move toward $90K.