With Bitcoins price breaching the $50,000-mark over the last 24-36 hours, many believe the worlds largest cryptocurrency has fully recovered from the depreciation that saw BTC drop from over $56,000 to under $47,000. However, its worth noting that the dip in Bitcoins price also coincided with a surge in Bitcoins Open Interest, something that has emerged as somewhat of a trend over the last few market cycles.
With the Open Interest in Bitcoin Futures above $15 million, there is a distinct possibility that this is a bearish signal for Bitcoins price. In fact, with the cryptocurrency dropping below $50k at the time of writing, this just seemed all the more likely.
Based on the chart representing Aggregate Open Interest in Bitcoin Futures, the last time Open Interest hit a high, it was reflected in the price drop, including a drop of nearly 10% in a single day. If something similar happens again, then the price may drop below $45,000, based on the cryptocurrencys press time price action.
Here, a valuation of $45,000 would be an important psychological level for Bitcoins price. Coupled with the fact that BTCs price has historically dropped in March, nearly every year since 2013, it is likely that the two may have a negative impact on the cryptocurrencys valuation, recovery from which might even take a month.
Its also worth noting that Plan Bs S2F and its target for Bitcoins price do not have a clear prediction for the number of corrections or dips it will see, before hitting $100,000.
Further, according to a recent tweet by Upstream Data Incs Steve, Bitcoin reverses the Cantillon Effect and therefore, we can expect central banks to retreat to a g ...
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