As Bitcoin’s open interest volume approaches its yearly peak, selling pressure is seen to dominate spot volumes, which could be a sign of increased volatility.

Bitcoin's monthly price chart$BTC

, is closing with its first bullish engulfing candle since January 2023, indicating a potential trend reversal. While long-term expectations for late 2024 and early 2025 appear optimistic, short-term signs point to potential volatility. With Bitcoin’s open interest volume rising to $35 billion, market volatility is on the rise—you can check out our detailed article for a more comprehensive analysis of BTC price action.

Increasing Open Interest Volume and Market Outlook

As of September 27, Bitcoin’s open interest volume reached $35 billion, matching the peaks seen in February and July 2024. This increase demonstrates the significant influence the futures market has on BTC’s price direction. However, despite this upward trend, the funding rate has remained unusually stable, reflecting a distinct sense of indecision among repeat traders. Independent trader Adam noted that this market uncertainty is further amplified by the negative depth in the spot order book, suggesting aggressive selling pressure as Bitcoin approaches the $66,000 resistance level.

Looking at the 4-hour chart of Bitcoin, we see a bearish divergence between the BTC price and the Relative Strength Index (RSI). This technical indicator suggests that the price could drop to $62,300 in the short term, which would imply a 4.66% drop. The fact that multiple liquidity wicks have been formed around $62,000 increases the possibility of a bounce here. However, further declines could find support in the $59,500 to $61,000 range, which coincides with important Fibonacci levels and the exponential moving averages (EMA-50, EMA-100, and EMA-200). A daily close below $60,000 could jeopardize the current bullish sentiment and potentially lead to a trend reversal.