[Analysis] "Bitcoin, OI Decreases and Massive Long Liquidations…Potential for Bullish Trend"
Summary
- It was reported that after the Fed's rate freeze, a divergence emerged between Bitcoin price and open interest (OI).
- Massive long position liquidations occurred on Binance, resulting in late-coming investors being forced out of the market.
- Historically, after the Fed held rates steady, there has often been a trend of OI decreasing and bullish movement in Bitcoin.
On the 18th (local time), following the Fed's decision to keep the benchmark interest rate unchanged, a divergence between the price of Bitcoin and open interest (OI) emerged on Binance. This is interpreted as a sign that the Bitcoin sell-off is subsiding.
On the 19th (local time), CryptoQuant analyst Amr Taha analyzed, "On Binance, while the BTC price has repeatedly formed the same low point above the $104,000 level, confirming strong support, Bitcoin OI has continuously set even lower lows, indicating that a gradual deleveraging process is underway across the derivatives market."
Liquidation data also concentrated on long positions. On the Binance liquidation delta chart, a massive liquidation of long positions occurred near $104,000, resulting in late investors exiting the market. Short liquidations were minimal, with a long squeeze leading the market trend.
Taha noted, "This round of liquidations coincides with the Fed's decision to hold interest rates steady," and added, "In the past as well, when the Fed kept rates unchanged, Bitcoin often showed strength as open interest decreased."
Heecheol Yang
heecheol@bloomingbit.ioHello, I'm a reporter at bloomingbit
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