On January 22nd, BTC continued to deny stemming the losses it has suffered recently. As such, predictions indicating that the price will flee to $33k seemed ever more likely to happen in reality.
BTC Open Interest Remain “Not Flushed”
Data from TradingView and CoinTelegraph Markets tracked BTC (Bitcoin)/USD as the prices dropped beneath $35k during January 22nd’s first half. Bulls did not have a lot of silver linings to cling to as the weekend approached. As such, the decreased volume for the weekend suggested traditional erratic moves. The likelihood was increased ever since BTC lost the $40k support level on January 21st.
Some, such as El Salvador, took full advantage of the recent low price levels. Others, however, were concerned that despite Bitcoin’s price drop, the pressure on the bulls continued to exist.
William Clemente, an analyst, and trader said that the craziest part of all this is that open interest continues to remain un-flushed. As such, he noted that traders of derivatives are still trying to battle the trend.
Additionally, Byzantine General, a popular account on Twitter, quipped that funding still remains positive despite all the carnage and an absolute panicking state. Neither are futs backwarded nor did OI see a major down. They called it an interesting occurrence and then equated interesting with poverty.
Nevertheless, there was slight relief which was the RSI of BTC on January 22nd. Its level was the lowest since Mar 2020. In March 2020, Bitcoin’s price had crashed and reached $3,600. It would subsequently stage a return that would continue throughout the majority of 2021.
On January 22nd, the Daily RSI was recorded to be only 20. That is well below the traditional zone where it is “oversold”. Markets of equities had been hit near the weekend.