$1B in open interest wiped out, showing reduced leverage.
Negative net taker volume signals strong selling pressure.
BTC may retest $106K if bearish trend continues.
Leverage Unwinds as Open Interest Drops
Bitcoin markets are showing signs of a pullback after a dramatic $1 billion drop in open interest. This metric represents the total value of outstanding derivative contracts and serves as a key indicator of market sentiment. A sharp decline often signals that traders are closing positions, reducing risk, or being liquidated.
Such a large-scale unwind reflects a cooling off in leveraged activity — a typical sign that volatility is retreating after a heated rally. This coincides with Bitcoin’s recent local peak around $110,000, where many traders likely took profits or cut losses.
Seller Dominance Grows on the Charts
Adding to the bearish picture is the appearance of negative net taker volume, represented by a strong purple bar on the charts. This metric shows that sellers are more aggressive than buyers in recent trades, further pushing the market downward.
When sellers dominate, it often means the bulls are stepping back, at least temporarily. This dynamic increases the likelihood of a continued pullback unless strong buying interest returns quickly.
A $1B drop in open interest indicates a large-scale position unwind and reduced leverage. The negative net taker volume (purple bar) reflects seller dominance and a pullback from the local $110K peak. If the bearish momentum persists, BTC could test support around $106K. pic.twitter.com/8CSDTr0uux
— Axel Adler Jr (@AxelAdlerJr) June 10, 2025
Testing the $106K Support Level?
With seller pressure mounting and leverage declining, Bitcoin could face a deeper correction. The key level to watch now is the $106,000 support zone. This area has held previously, but if bearish momentum persists, a test of this level becomes more likely.
For investors and traders, the message is clear: the market is resetting. Whether this turns into a short-term correction or the start of a longer downtrend will depend on how Bitcoin behaves near that critical $106K mark.
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