Important points to note
This week, Bitcoin experienced significant selling pressure, with over 40,000 BTC being deposited into exchanges and old wallets becoming active again. However, despite this, BTC managed to stay above $110,000, supported by increasing Open Interest, especially on Bybit, and stable Funding Rates indicating a balanced market with some tension.
Bitcoin [BTC] took a hit as over 40,000 BTC entered exchanges this week
Nevertheless, BTC continued to trade above $110,000, slightly below its recent high near $123,471.
What’s preventing the market from collapsing? Large transactions from whales and OTC desks are still in play. Let’s dive deeper into the factors driving both the pressure and the support!
Stable Funding Rates as Bitcoin holds above $110K
Despite the influx of selling pressure and substantial spot inflows into exchanges, Bitcoin Funding Rates on major derivatives platforms like OKX, Binance, and Bybit have remained steady to slightly positive.
Source: CryptoQuant
This indicates a reduction in excessive leverage and signals a more stable market. Data on liquidations supports this claim – there is minimal evidence of forced liquidation.
Collectively, these indicators suggest a market in a consolidation phase, potentially gearing up for the next move once the summer slowdown subsides.
Surge in Bybit Open Interest amid price decline
Source: Alphractal