What You Should Know:
- Bitcoin (BTC) dipped below $92,000 during overnight trading, hitting levels that showed resilience in December. However, this decline coincided with a significant increase in perpetual futures open interest, indicating seller dominance.
- According to data from Coinglass, futures interest in the BTC/USDT pair trading on Binance rose by roughly 12,000 BTC (over $1 billion) as BTC’s price fell from $96,000 to under $92,000.
An uptick in open interest paired with a price decline typically suggests a rise in bearish short positions, as traders are likely opening fresh shorts in anticipation of further declines.
The cumulative volume delta (CVD) across both futures and spot markets reflects a negative trend, indicating that the selling pressure has eclipsed buying activity.
Bearish Marubozu Candle Formation
On Monday, Bitcoin’s price decreased by 4.86%, with sellers taking control throughout the day. This scenario is mirrored in the candlestick pattern, which displays minimal upper and lower shadows and a prominent red body, signifying weak buying activity.
Analysts categorize this situation as a bearish marubozu pattern. This bearish candlestick formation comes as prices hover below significant 50- and 100-day simple moving averages (SMA), which could motivate sellers for even greater losses. Support is noted near $89,200, while resistance can be found around $99,520.
