🌎 Bitcoin Shows Signs of Recovery Amid Reduced Whale Activity

Bitcoin (BTC) has been in a bearish zone following a series of significant selloffs that caused a market-wide downturn. Currently, BTC is up by 0.6% in the past 24 hours, trading at $58,180. The market cap of the asset stands at $1.14 trillion. Recent data indicates a 42% increase in daily trading volume, reaching $29.5 billion.

BTC Open Interest and Liquidations

According to data from Santiment, the total open interest for Bitcoin dropped from $10.29 billion to $10 billion within the past day. This decline coincides with BTC liquidations amounting to $148 million.

Additional data reveals that $100 million worth of short and $48 million in long BTC trading positions have been liquidated over the past 24 hours. The largest single liquidation, valued at $22.24 million in BTC-USDT-swap, occurred on the OKX crypto exchange.

Impact on Price Volatility

As open interest declines, a decrease in price volatility for Bitcoin is anticipated due to the reduced amount of liquidations. Santiment data also shows that the BTC Relative Strength Index (RSI) is currently at 30, indicating that Bitcoin is oversold at this price point. The combination of the RSI and declining open interest could suggest a short-term price increase for Bitcoin.

Whale Activity and Market Trends

Bitcoin’s whale activity has significantly decreased since it fell below the $54,000 mark on July 5. Santiment reports that the number of whale transactions involving at least $100,000 worth of BTC dropped from 11,648 to 6,063 unique transactions.

The broader market’s bearish momentum has largely been driven by recent BTC selloffs. Over the past three weeks, the U.S. government, the German government, and the now-defunct crypto exchange Mt. Gox have moved over $1 billion worth of Bitcoin since June 19.