According to CryptoPotato, CryptoQuant analyst Gaah said that despite the approaching halving event, Bitcoin (BTC) is still at risk of a deeper price correction.
In a quick observation on the on-chain analytics platform, Gaah noted that the crypto market remains hot as it is in a price zone that is dangerous for leveraged traders. Significant pressure could trigger a correction that breaks Bitcoin’s current price structure. Currently, Bitcoin’s open interest is hovering in the medium range, indicating that investors are neutral in their interest for new positions. However, BTC’s price is still in the area where the top position was last created in March. The open interest range is also volatile in the upper region, which means that leveraged traders seeking liquidity have more room for liquidation.
Gaah said that this area is dangerous for traders, and any significant pressure could lead to a change in the price structure, causing BTC to fall before setting a new all-time high. In addition, the general market sentiment is enthusiastic, such as the funding rate in the Bitcoin futures market is currently high in the upper range, which indicates a period of extreme greed and creates room for a sharp decline.
