#BTC are btc current downtrend start for short time?

Bitcoin's current price is $95,947.43, with a 0.26% decrease over the last day. To determine if a short-term downtrend has started, let's look at some key indicators ¹:

- *Price Movement*: Bitcoin's price has been volatile, but the recent correction has forced a mass exit of over-leveraged traders, leading to a significant drop in open interest.

- *Open Interest*: Open interest on Binance has plummeted by 37% from its all-time high of $12 billion to $7.5 billion, indicating a major reset and potential renewed optimism.

- *Funding Rates*: Funding rates on Binance have plunged into negative territory, indicating bearish sentiment. Historically, when funding rates dive into extreme negativity, it often sets the stage for short squeezes.

- *Spot Market*: Despite the bearish sentiment in futures markets, the spot market shows underlying strength, with Bitcoin's spot price hovering around $60 above its perpetual futures counterpart on Binance.

Given these indicators, it's unclear whether a short-term downtrend has definitively started. However, the convergence of diminishing open interest, negative funding rates, and bullish spot market activity paints a compelling picture that suggests cautious optimism.

*Key Factors to Watch*:

- *Support Levels*: Bitcoin's accumulation around vital price points, such as $79,000 and $82,080, could prove to be the foundation for an influx of new buyers.

- *Market Sentiment*: The broader cryptocurrency landscape remains cautiously optimistic, with Bitcoin commanding around 63% of the market share.

- *Macroeconomic Shifts*: External influences like macroeconomic shifts and geopolitical currents play a crucial role in steering trader sentiment.

To confirm a trend reversal, it's essential to monitor pivotal signals that could redefine trading strategies ².