Bitcoin News – BTC Plunges 4.86%: Is a Deeper Sell-off Coming?
Bitcoin News – Bitcoin (BTC) has once again dropped below the critical $92,000 mark, revisiting levels that have shown resilience since December. However, this latest decline is accompanied by a significant increase in perpetual futures open interest, indicating a strong presence of bearish sentiment in the market.
Open Interest Surge and Seller Dominance
According to data from Coinglass, open interest in the BTC/USDT futures pair on Binance surged by approximately 12,000 BTC, which is worth over $1 billion, as the price of Bitcoin fell from $96,000 to under $92,000. This uptick in open interest, alongside a price drop, signals an influx of short positions, as traders likely opened fresh shorts anticipating further price declines.
The Cumulative Volume Delta (CVD) across both futures and spot markets on Binance has turned more negative, deepening with the recent price dip. This suggests that selling pressure is outpacing buying activity, contributing to the downward trend.
Bearish Marubozu Candlestick Signals More Losses
On Monday, Bitcoin dropped by 4.86%, with sellers dominating the price action throughout the day. The candlestick pattern from that day displayed negligible upper and lower shadows and a strong red body, indicating that buyers had little influence on the price movement. This pattern is recognized by technical analysts as a bearish marubozu pattern, signaling further potential downward movement.
Currently, support for Bitcoin is seen around $89,200, the low from January 13, followed by the 200-day simple moving average (SMA) at $81,661. On the resistance side, the Feb. 21 high of $99,520 is the key level to beat if Bitcoin is to reverse its current downtrend.
With bearish pressure continuing to mount, traders and investors should monitor these critical levels for signs of further market weakness.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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