While Bitcoin's price corrects about -25% since its last all-time high, the open interest is close to reaching the extreme fear region.
The decrease in Open Interest since March 2024 indicates an outflow of money from the market in a Distribution region formed by the price.
Funding Rates dips into the negative range briefly during the corrective movement.
As long as the average remains neutral, it means a continuation of the sideways price movement in the Distribution area created.
However, market sentiment at this price level is closer to the fear-neutral extreme than to euphoria, which could lead to further price expansions.
Written by G a a h