Bitcoin’s price has been bouncing around lately, but things are starting to settle down. Let’s dive into what’s happening.
A Shift in Bitcoin’s Market Trend
After a wild ride, Bitcoin seems to be finding its footing. While it’s seen some big price swings, data suggests a shift is happening. Glassnode, a big name in crypto data, noticed this change. Their data shows Bitcoin is adjusting to a new price range, following a roughly 30% correction. This stabilization could mean we’re building up to a big move, either up or down. If Bitcoin can’t hold key support levels, we could see another sell-off. It’s hard to say for sure if the market is overbought or oversold right now. Adding to the uncertainty, long-term Bitcoin holders aren’t doing much, suggesting a slow market with sideways price action.
Deleveraging in the Bitcoin Market
The slow market is also showing up in a big drop in Bitcoin’s Open Interest (OI). In just two weeks, about $10 billion in open interest vanished (that’s a huge amount!). This is faster than the drop seen in the previous two months. This is significant because open interest hit a record high of over $33 billion in January, showing high levels of leverage in the market. A lot of this leverage got liquidated recently, likely due to some political uncertainty. An expert, Darkfost, calls this “deleveraging,” and while it’s concerning, they say it’s a necessary step for a bullish continuation – basically, a market reset. Looking at the 90-day open interest change, we see it’s negative, highlighting this reset. The open interest change for 90-day Bitcoin futures has even dropped to -14%.
