We are once again in a high open interest zone, as it has exceeded the critical USD 18B level. In the past, we have seen major corrections each time this occurred. The market seems indecisive in many aspects, with some believing that the next big upside move is on the horizon, while others think BTC's downward trend remains strong. A common belief is that BTC may need a final shakeout before surging to a new all-time high (ATH).

On the other hand, funding rates are not particularly high. They are slightly above their 200-day SMA, with long traders being dominant, which is unsurprising. Historically, funding rates have turned negative with major corrections, often before significant price increases.

In conclusion, it wouldn’t be surprising to see some long liquidations that lower the open interest and prepare the market for its next move. Given that funding rates aren’t excessively high, even if a price correction occurs, it may not be very deep.

Written by aytekin466