Bitcoin’s nearly $12 billion open interest shakeout earlier this month might be just the catalyst needed for the asset to regain its upward momentum, according to a crypto analyst.
“This can be considered as a natural market reset, an essential phase for sustaining a bullish continuation,” CryptoQuant contributor DarkFost said in a March 17 markets report.
“Looking at historical trends, each past deleveraging like this has provided good opportunities for the short to medium term,” the analyst said.
CoinGlass data shows that on Feb. 20, Bitcoin’s (BTC) open interest (OI) — a metric tracking the total number of unsettled Bitcoin derivative contracts such as options and futures — stood at $61.42 billion before dropping 19% to $49.71 billion by March 4.
Bitcoin’s open interest is sitting at $49.02 billion at the time of publication. Source: <a data-ct-non-breakable="null" href="https://www.coinglass.com/BitcoinOpenInterest" rel="nofollow