It‘s wanting additional and additional sort of a capitulation, but so far, open interest remains “unflushed,” analysts warn.
Bitcoin (BTC) refused to stem recent losses during Jan. 22 as predictions of a flight to $33,000 and lower looked progressively likely to become a reality.
Open interest “still not flushed”
Data from Cointelegraph Markets professional and TradingView followed Bitcoin (BTC)/USD because it fell through $35,000 throughout the primary half of January. 22.
With few silver linings obtainable for the bulls, lower weekend volume was poised to deliver some classic erratic moves once Bitcoin lost $40,000 support on January. 21.
While some, including El Salvador, created the foremost of recent lower levels, others voiced concern that despite the drop, pressure still remained on bulls.
“Crazy part is open interest still hasn't flushed,” trader and analyst William Clemente summarized, one in every of several market participants noting that derivatives traders are still attempting to fight the trend.
“After all this murder and absolute state of panic funding somehow isn‘t giga negative, futs aren‘t backwarded and OI barely went down. fascinating times. And with ‘interesting’ I mean poorness,” standard Twitter account Byzantine General to boot quipped.
RSI sinks towards March 2020 COVID lows
A supply of slight relief came within the style of Bitcoin‘s relative strength index (RSI) on the day, this dipping to its lowest levels since March 2020.
( William Suberg, Cointelegraph, 2022)