BULLISH (0.70)CoinTelegraph

Bitcoin Open Interest Plunge Signals Recovery

Bitcoin Open Interest Plunge Signals Recovery

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Bitcoin derivatives open interest has declined by 30% from October highs, representing a significant deleveraging event that has purged excess speculative positions from the market. This reduction in leverage typically reduces systemic risk and creates healthier market conditions for sustainable price appreciation.

Historically, such sharp contractions in open interest have coincided with market bottoms and preceded bullish recoveries. The current data suggests that the recent correction may have flushed out weak hands, potentially setting the stage for renewed upward momentum as market structure stabilizes and fundamentals reassert themselves.

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