Bitcoin sellers (BTC) are pinning their hopes on continuing to see prices below $10,000 after halving based on five key futures market metrics.
The five measures are open interest, funding, long and short deltas, bearish divergence and liquidity hoarding at USD 10,000.
Stagnant open interest on Bitcoin’s major futures exchanges
Open interest – the total number of open long or short contracts on the market – in Bitcoin Revolution Review, Cryptosoft Review, Bitcoin Champion Review, Corona Millionaire Review, Bitcoin Gemini Review futures contracts on BitMEX, Binance Futures, Bybit and other futures exchanges is struggling to increase.
On May 10, when Bitcoin’s price dropped sharply from $9,570 to $8,100 on BitMEX just hours before the halving, it liquidated about $200 million in long positions in a single hour.
At that time, BitMEX’s open interest fell substantially as many long contracts were liquidated or forced to adjust their positions.
On May 14, Bitcoin’s price was also rejected at USD 9.900, falling to USD 9.200 overnight. The rapid decline caused the liquidation of USD 42 million. Within five days, at least USD 270 million in long contracts were liquidated on BitMEX alone.
Bitcoin buyers are seeing this level after another 5% drop
Bitcoin rejects the $10,000 and $9,900: Tradingview
After the two massive sales, the appetite of investors in the futures market to enter a trade apparently diminished. Potentially, it could indicate that buyers are showing signs of exhaustion as selling pressure increases to a key resistance level of USD 10,000.
Imbalance of long and short contracts
On the three main futures exchanges, Bitfinex, Binance Futures and BitMEX, long contracts represent approximately 72.37% of total open interest.
As of May 15, about USD 661.7 million in long positions are open, but only USD 252 million in short positions. The large gap between long and short contracts in an area of multi-year resistance leaves Bitcoin vulnerable to a possible upward contraction.
USD 270 million liquidated in long positions due to exaggerated pre-halving
Last week, Bitcoin experienced two major upward contractions in short periods of time. However, the market is still heavily influenced towards long contracts and that means that there is a lot of liquidity to be taken in the middle of the USD 9,000.