The post Bitcoin – Why BTC faces $122K test after 8% Open Interest drop appeared on BitcoinEthereumNews.com.

Key Takeaways Why is Bitcoin’s Open Interest declining despite price stability? Open Interest dropped nearly 8% as traders closed leveraged positions, signaling growing caution and reduced market confidence. What do the on-chain metrics suggest about Bitcoin’s next move? Dominant taker selling, negative NVT, and –247% DAA divergence point to short-term consolidation before recovery. Bitcoin’s [BTC] Open Interest (OI) on Binance has dropped nearly 8% within three days after peaking at $15.07 billion, signaling traders are cutting back leveraged positions amid heightened volatility.  BTC’s market cap dropped to approximately $13.88 billion after briefly surging to $125K before retreating to near $122K, at press time. This shift signals fading enthusiasm after weeks of aggressive buying. Such patterns are common after strong rallies and suggest that traders are turning cautious, favoring stability over risk as the market reacts to recent price momentum. Spot Taker CVD hints… Bitcoin’s Spot Taker CVD (90-day) shows strong Taker Sell dominance, confirming sellers currently control short-term price direction.  This reflects increased market-side sell activity and weakening buyer aggression. Typically, when selling dominates for prolonged periods, it suggests fading bullish conviction and limited spot demand.  However, this also clears excess leverage, allowing the market to reset. The continued dominance of sellers implies that Bitcoin could face short-term price resistance, although a sudden shift in taker behavior could quickly reverse the current momentum. Source: CryptoQuant NVT Golden Cross falls!  The NVT Golden Cross has fallen to –1.24, at press time, representing a steep 59% decline, signaling weakening transaction value relative to Bitcoin’s market capitalization. Such a dip typically suggests slowing network activity during consolidation phases.  Historically, negative NVT readings align with oversold or undervalued zones that precede eventual recoveries. However, persistent declines below this level often indicate reduced on-chain strength.  This metric, therefore, highlights a cooling sentiment across the network,…

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Filed under: News - @ October 10, 2025 3:28 am