Declining open interest fails to deter Bitcoin’s bullish momentum
Bitcoin (BTC) has experienced a minor uptick in its price following a drop from the $70,000 level. This upward movement coincides with a decline in BTC’s total open interest (OI) by over $1 billion.
As of the time of writing, BTC is up by 0.6% in the last 24 hours and is currently trading at $66,500. The cryptocurrency’s market capitalization has surged to $1.3 trillion, with a daily trading volume of $44 billion.
According to data from Santiment, the total Bitcoin OI has seen a 9% decrease in the past day, falling from $12.36 billion to $11.25 billion. A sudden change in open interest could potentially lead to increased price volatility for the asset.
In addition, Santiment’s data shows that the number of whale transactions involving at least $100,000 worth of BTC has dropped from 15,454 to 14,020 unique transactions in the past 24 hours. This decline in whale activity coincides with a decrease in the global crypto greed and fear index, which has reached a one-month low of 71.
The Bitcoin Relative Strength Index (RSI) has risen from 54 to 57 in the past 24 hours, indicating slightly increased pressure and volatility for the flagship cryptocurrency. An RSI below 50 would potentially signal a bullish momentum for Bitcoin.
One possible reason for the increased RSI could be the profit-taking phase of Bitcoin miners. According to a report by crypto.news, BTC miners earned over $2 billion last month, surpassing the previous all-time high of $1.7 billion recorded in May 2021.
