Bitcoin (BTC) is trading around $37,300 with a market cap of $729 billion, indicating a 1.23% decrease in the past 24 hours. The price of the largest cryptocurrency is below the $37,500 level, suggesting that it is under selling pressure. As the price of the cryptocurrency remains below the $37,500 level, an expected increase in Open Interest (OI) and more liquidations are anticipated.
Experienced cryptocurrency analyst CrediBULL highlights the significant increase in OI in Bitcoin derivatives. This increase indicates that positions are being taken with an expectation of price decrease, contrary to the exit of many leveraged traders from the market. This situation demonstrates that leveraged positions are quite high and market risks are increasing.
The return of OI to the danger zone suggests that the cryptocurrency market is in an unstable state with high leverage and indicates higher volatility. The analyst also adds that increased volatility does not determine a clear direction for the market.
There are two possible scenarios for Bitcoin. The first scenario involves a significant short squeeze, resulting in a rapid price increase, while the second scenario is a continuous pullback situation. If there is a recovery above $37,600, a rapid and intense jump is expected. In the case of a long squeeze, a sharp drop in the opposite direction is anticipated.
CrediBULL points out two possible scenarios in the standard price chart for Bitcoin. The first scenario includes clearing local peak levels. If Bitcoin successfully clears the local peak levels and recovers, the target range of $38,000 to $38,200 can be aimed for, and short positions will be liquidated. If the local peak levels are not cleared, the analyst expects the price to retreat to the range of $36,600 to $36,900 and then recover from there.