Bitcoin open interest slides to a six-month low

Bitcoin open interest has witnessed a decline, touching its lowest levels in six months. The last time it occurred, Bitcoin was trading between the $50,000 to $60,000 mark before hitting $100,000.

The asset’s funding rate has been negative over the last few years, a development that occurred before it appreciated. According to an expert, these metrics are perfect for Bitcoin, suggesting that there might be a bottom formation.

Another analyst Ali Martinez was also upbeat about the same development, noting that Bitcoin has already bottomed out. He also added that BTC has a usual habit of bouncing back whenever its RSI slides below 30. Bitcoin’s RSI is presently around 24, with the analyst noting that a rebound could occur soon.

Analysts also mentioned that Bitcoin needs to overcome some resistance before it begins a proper recovery. CrediBULL Crypto added that the $93,000 level needs to be overcome to sustain an upward trajectory. He mentioned that getting there is easy but the bulls have witnessed issues getting past it.

Bitcoin resistance levels to watch

According to an analyst, Bitcoin has been trying to get past the $94k level, with the asset looking to cross the Kumo cloud level. Prices have been maintained above the level, establishing a reversal. However, he is hopeful that a return to a markup phase could happen soon and Bitcoin would soon hit $126k.

Martinez also opined that the Bitcoin bull run is still very much possible, noting that the current metric shows that the global money supply has been increasing and Bitcoin has been stagnant. He added that this provides investors with a good buying opportunity.

The price of Bitcoin has been affected by the broader market, with the asset dropping from $93k to $89k within an hour on March 3. The drop also coincided with the 1% drop witnessed by the S&P 500 futures. This event happened after China placed a 10% tariff on imports into the United States in retaliation to a sanction on the country.

Nevertheless, Bitcoin has a higher chance of reclaiming the $90,000 support level, with confidence boosted by Trump’s strategic digital asset reserves, which would include Bitcoin, Ethereum and other assets. However, the market participants are wary of future policies and how those policies being put into practice may affect the market.

Institutional demand for bitcoin has also been dropping, with CoinGlass noting that spot Bitcoin ETFs saw outflows of $2.39 billion last week and $540 million the week before. If such outflows continue, Bitcoin could still register price fluctuations. Bitcoin is presently trading at $86,000, seeing a drop of 8% in the last 24 hours.

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