The price of Bitcoin risks a continued downtrend as five metrics indicate higher chances of a short-term long squeeze.
Bitcoin (BTC) sellers are pinning their hopes on continuing to see sub-$10,000 prices in the aftermath of the halving based on five key futures market metrics.
The five measures are open interest, funding, long and shorts delta, bearish divergences, and liquidity grab at $10,000.
Open Interest on major Bitcoin futures exchanges stagnant
The open interest — the total amount of long or short contracts open in the market — of Bitcoin futures contracts on BitMEX, Binance Futures, Bybit and other futures exchanges is struggling to increase.
On May 10, when the price of Bitcoin abruptly dropped from $9,570 to $8,100 on BitMEX merely hours before the halving, it liquidated around $200 million worth of longs in a single hour.
At the time, the open interest of BitMEX dropped substantially as many long contracts were either liquidated or forced to adjust their positions.
On May 14, the price of Bitcoin similarly rejected at $9,900, dropping to as low as $9,200 overnight.