Bitcoin price holds above the support level of $98.3K, sharing warning signals from the cryptocurrency market.
The Bitcoin price consistently remains above the real price of short-term holders at $98.3K, the profit/loss dividing point for recent investors. Although the trend remains strong, long-term market indicators show warning signs, especially as open interest (OI) drops sharply.
The key support index remains strong
Bitcoin continues to maintain the important support threshold of the real price of short-term holders at $98.3K. This is the threshold dividing profits and losses for short-term investors, serving as a cushion for the short-term upward trend.
Source: Alphractal
The STH-MVRV index remains above 1, indicating that short-term holders are still in profit. However, if Bitcoin breaks below $98K, the market may face a deeper correction.
The trend of aligned investors using leverage has started to decline sharply.
After holding strong above key support, the 180-day delta OI index has turned negative, signaling more closing of leveraged positions than new openings in the past 6 months.
Source: Alphractal
The decline in open interest (OI) of over $11.3 billion on exchanges such as Bitget and CME indicates heightened caution among cryptocurrency traders. Similar developments have previously served as a precursor to sharp growth or price decline cycles in the past, such as in 2021, 2022, and 2023.
Additionally, data from the Gate.io exchange indicates a new flow of money into the market, creating a contrast in trading data sources, increasing the complexity of the current trend.
Expanding short-term oversold signals
The decline in open interest and the cautious sentiment index has led Bitcoin to enter the oversold zone in the short term.
Source: Alphractal
In the past, these oversold regions often signaled the formation of temporary peaks or interruptions in the long-term downtrend. This provides potential for a short-term recovery, especially when Bitcoin maintains above the real price of $98K.
However, if the price cannot maintain above this threshold, the likelihood of a significant market downturn will increase, turning the current oversold conditions into a premise for a deeper adjustment in the cryptocurrency market.
Source: https://tintucbitcoin.com/bitcoin-vuot-nguong-98k-usd/
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