We see funding rates coming down. We saw a sharp rise as people took short positions. This price action is manipulation.
We saw strong buying on the Coinbase premium index indicator, but we saw selling from our resistance zone. The 'O' zone is very important. We need to stay above the '0' zone for a strong rally. In the last price action, the 0 zone worked as resistance.
To examine the relationship of the open interest indicator to price, I look at the open interest line as a moving average. Notice that sometimes it works as support and sometimes as resistance. The price has now dropped below the open interest and has become resistance. We need to break above this zone for strong rises.
Written by TraderOasis