Bitcoin Open Interest Drops 22% In 10 Days – A Reset Before The Next Big Move? | TheSpuzz

Bitcoin has faced massive volatility and price swings as market uncertainty persists. 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.

Adding to the uncertainty, CryptoQuant data reveals that Bitcoin’s Open Interest (OI) has dropped by 22% in the past 10 days, falling from 327K BTC to 255K BTC. This significant decline suggests that a large number of positions have been closed, whether due to liquidations or voluntary exits. 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.

With Bitcoin still hovering between key support and resistance levels, the coming weeks will be crucial in determining its next major trend. Whether BTC can regain momentum above $90,000 or faces another wave of selling will shape the market’s trajectory in the short term.

Bitcoin Faces Serious Volatility

Bitcoin is currently trading below the $90,000 mark, but market sentiment is shifting as many analysts now call for a potential trend reversal following recent price action. After a period of extreme volatility, bulls are attempting to push BTC back above $90K, a crucial psychological and technical level. A break above this zone could set the stage for a move toward $100,000 and new all-time highs (ATHs).

However, despite the growing optimism, BTC remains at risk if it fails to hold key support levels. If Bitcoin drops below $80,000, it could trigger another wave of selling pressure, further delaying a full recovery. Bulls must defend current demand zones and reclaim $90K soon to avoid a deeper correction.

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.

Bulls Facing A Crucial Test

Bitcoin is currently trading at $89,700 after days of massive volatility and sharp price swings. The market remains highly unstable, with BTC experiencing rapid movements between key support and resistance levels. For bulls to confirm a recovery, they must reclaim the $90,000 level and establish it as strong support. A decisive move above this mark would indicate renewed buying momentum and could set the stage for a push toward the $100,000 level. If BTC successfully clears this zone, it will likely kickstart a new bull trend, attracting further institutional and retail interest.

However, if Bitcoin fails to reclaim $90K, the market could see renewed selling pressure, potentially driving BTC into lower demand levels. A drop below $85,000 would put Bitcoin at risk of further downside, with $80,000 emerging as the next key support zone.

With market uncertainty still high, traders are watching whether BTC can hold or break critical levels. The coming days will be crucial in determining whether Bitcoin regains strength or faces another leg down, delaying any potential bullish breakout.

Featured image from Dall-E, chart from TradingView