Bitcoin (BTC) has entered a bearish phase following a series of significant sell-offs that have led to a decline in the overall market. As of now, BTC is showing a modest 0.6% increase over the past 24 hours and is currently trading at $58,180. The market capitalization of the asset stands at $1.14 trillion. Recent data reveals that the daily trading volume of BTC has risen by 42%, reaching $29.5 billion.
Santiment’s data indicates that the total open interest for Bitcoin has decreased from $10.29 billion to $10 billion in the last day. This decline coincides with a total of $148 million in BTC liquidations.
Coinglass data reveals that within the past 24 hours, $100 million worth of short BTC trading positions and $48 million worth of long positions have been liquidated. The largest single liquidation, amounting to $22.24 million in BTC-USDT-swap, occurred on the OKX cryptocurrency exchange.
As the open interest diminishes, it is expected that Bitcoin will experience lower price volatility due to the decrease in liquidations.
Santiment’s data also shows that the Relative Strength Index (RSI) for BTC currently stands at 30. This indicates that the flagship cryptocurrency is oversold at its current price level. Furthermore, when combined with the declining open interest, the RSI suggests the possibility of a short-term price increase for Bitcoin.
Since Bitcoin fell below the $54,000 mark on July 5, whale activity has seen a significant decline. Santiment’s data reveals that the number of whale transactions involving at least $100,000 worth of BTC dropped from 11,648 on July 5 to 6,063 unique transactions at present.
It is worth noting that the bearish momentum in the overall market has been largely influenced by the recent sell-offs of Bitcoin over the past three weeks. Reports indicate that the U.S. government, the German government, and the now-defunct crypto exchange Mt. Gox have collectively moved over $1 billion worth of Bitcoin since June 19.
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