Key Points
- Declining Open Interest Deltas indicate potential weakening institutional positions in Bitcoin.
- This trend could trigger a significant drop in Bitcoin’s price, even up to 50% from its peak.
The recent market indicators are hinting towards a possible drastic fall in the price of Bitcoin (BTC).
Analyses of the 90- and 180-day Open Interest Deltas have shown a concerning weakening trend. Historically, such a trend has often been observed before significant market corrections.
Bitcoin: Open Interest Delta and Its Implications
This shift seems to suggest that institutional investors might be exiting their positions. Such a move could set off a considerable downturn in the price of Bitcoin. This could potentially result in a price drop of as much as 50% from its recent peak.
The declining Open Interest Deltas point towards a weakening of institutional positions. This reduced liquidity and profit-taking could lead to a riskier environment, thus increasing volatility.
