#Novedades Recent collapse of 12 billion dollars in Bitcoin open interest was essential, according to analyst

An analyst stated that the massive reset of open interest in Bitcoin may present good short-term opportunities if history repeats itself.

Recent collapse of 12 billion dollars in Bitcoin open interest was essential, according to analystMarket news

The collapse of nearly 12 billion dollars in Bitcoin open interest earlier this month could be just the necessary catalyst for the asset to regain its bullish momentum, according to a cryptocurrency analyst.

"This can be seen as a natural market reset, an essential phase to sustain a bullish continuation," said CryptoQuant contributor DarkFost in a market report on March 17.

"Looking at historical trends, every past deleveraging like this has provided good opportunities for the short and medium term," said the analyst.

Data from CoinGlass shows that on February 20, Bitcoin's open interest (OI)

BTC

75,757 €

, a metric that tracks the total number of unsettled Bitcoin derivative contracts, such as options and futures, was at 61.42 billion dollars before falling 19% to 49.71 billion dollars by March 4.