Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

With over $10 billion in open interest wiped out in just two months, the Bitcoin landscape has experienced a significant reboot, and analysts are predicting that the price of the flagship crypto will soon recover.

The abrupt change has prompted discussions regarding the cryptocurrency’s future price trajectory. While some market experts see this as an opportunity for a fresh start, others caution that there is still a heavy degree of uncertainty.

Related Reading: Bitcoin Paychecks? Brazil Introduces Bill To Legalize BTC Salaries

Bitcoin Open Interest Down

Reports show that Bitcoin’s open interest hit a peak of $33 billion on January 17. However, by early March, more than $10 billion had been wiped out. This massive liquidation wave was fueled by various factors, including widespread political noise and broader market conditions.

The figure shows that the open interest of Bitcoin’s 90-day futures was down by 14% from February 20 to March 4. As a result of the forced withdrawal of many traders, the market had to change gears. Others worry that more volatility might come next, while others see this as a positive adjustment.

Traders Watching For Signs Of Stability

Traders are now looking for stability since open interest has dropped significantly. Some people claim that right now the market is more suited for long-term expansion. Others remain cautious, seeing that more market swings could come before Bitcoin sets up a strong foundation.

Caution Required

The founder of Into The Cryptoverse, Benjamin Cowen, cautions that the current bull cycle may be in danger if prices fall below the lower $70,000s. He suggests that a close in the low $60,000s could be a warning that the bull market is coming to an end, drawing comparisons to the 2017 cycle. On the other hand, keeping prices over $70,000–$73,000 would protect the market’s structure.

At the moment, Bitcoin is staying around $82,900. Cowen says that a macro lower high could happen later this year if the price falls below key support levels. This would mean that the picture for the market is more bearish by Q3. If past trends are accurate, though, this phase of consolidation could lead to another big rise in the next few months.

Optimism In The Air

Meanwhile, Bitcoin’s long-term prognosis remains hopeful. According to Josh Mandell, a well-known analyst and millionaire who has over 79,000 followers on X, if the price of Bitcoin closes above $84,000 at the end of the month, it might reach $100,000.

Related Reading: Ethereum Needs A Leader—Or Its Future Could Be In Jeopardy, Ex-Engineer Warns

Bitcoin’s Price Action Remains Uncertain

Recent liquidations highlight how quickly things can change, and the Bitcoin market has seen sharp price swings in the past. While some investors see this as a chance to get assets at lowered rates, others would rather see how the market responds.

For now, everything is a blend of uncertainty and optimism — a wait-and-see atmosphere. As they say, anything can happen in the cryptoverse.

Featured image from Gemini Imagen, chart from TradingView

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.