The post Bitcoin Sees Extended Extreme Fear as Open Interest Falls: 2X Rally Incoming? appeared on BitcoinEthereumNews.com.

Several key Bitcoin metrics are in the dumps, but there may be a silver lining. Amid Bitcoin‘s price struggles, which have seen it swing wildly between mid-$80,000 and the $100,000 level over the past few weeks, market sentiment has been in decline. According to the Fear and Greed Index, this culminated in an extended Extreme Fear reading over the weekend as trade war fears and panic selling hit a fever pitch. Fear and Greed Index Source Kronos Research The Fear and Greed Index gauges market sentiment using volatility, market volume, social media mentions, Bitcoin dominance, and Google Trends. Beyond market sentiment, open interest in the leading digital has also plummeted recently. Specifically, recent CryptoQuant data suggests that this metric, which can often be used to gauge speculative interest, has dropped 22% in the past ten days alone, from 327,000 BTC to 225,000 BTC. Bitcoin open interest Source Axel Adler Jr Despite the decline in these metrics, there may be a catch. Rebound Incoming? For one, leading crypto research firm Kronos Research has noted that the last time Bitcoin recorded extended Extreme Fear readings on the Fear and Greed Index like this was in September 2024, when it traded for about $53,000. As the firm highlighted, the asset’s price doubled to over $106,000 in the months that followed. At the same time, prominent crypto analyst Axel Adler Jr has contended that the recent decline in Bitcoin OI may “indicate a clearing of overheated positions, potentially setting the stage for a new market impulse.” The crypto market experienced a resurgence on Sunday as President Donald Trump reiterated crypto reserve plans. Bitcoin, in particular, surged over 9% to around the $94,000 price point. But most of these gains were given away as markets panicked over trade war concerns on Monday. All eyes are…

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Filed under: News - @ March 5, 2025 9:24 pm