Bitcoin has faced massive volatility and price swings as market uncertainty persists. After briefly holding above $90,000 and $85,000
Bitcoin (BTC) faced massive volatility and price swings as market uncertainty persisted. After briefly holding above $90,000 and $85,000, BTC lost both levels, triggering a sharp decline before bulls stepped in. The selling pressure was met with a strong reaction, pushing Bitcoin to $95,000 following President Trump’s announcement of a U.S. Strategic Crypto Reserve.
However, despite this temporary rally, BTC remains trapped in a volatile trading range, leaving traders uncertain about its next move. According to CryptoQuant data, Bitcoin’s Open Interest (OI) has dropped by 22% over the past 10 days.
This substantial decline, visualized in the above chart, showcases a decrease in pending orders for Bitcoin futures on major exchanges. As the chart highlights, OI fell from 327K BTC to 255K BTC, signifying a significant shift in trader activity. A sharp drop in OI often indicates a shift in market sentiment, with traders either reducing risk exposure or waiting for clearer market direction before re-entering.
This development comes as Bitcoin continues to navigate a crucial stage of its price trend. After experiencing a strong rally from the $70,000 zone, BTC faced difficulties breaking out above $90,000, a key psychological and technical level.
After failing to hold gains above this zone, Bitcoin faced rejection from the 1.2 FIB level, marking a potential turning point in the short-term trend. However, with the recent price increase following President Trump’s announcement, bulls might have an opportunity to defend current demand zones and reclaim $90K.
Top analyst Axel Adler shared insights on X, highlighting a key development in Bitcoin’s Open Interest (OI). Over the past 10 days, OI has dropped by 22%, falling from 327K BTC to 255K BTC. This significant decline suggests that a large number of positions have been closed, either through liquidations or voluntary exits.
While this reduction in Open Interest may seem bearish, it could also indicate a clearing of overheated positions, potentially setting the stage for a new market impulse. If BTC can hold its ground and attract fresh buying interest, the next leg higher could come sooner than expected.
