Bitcoin’s Deleveraging: A Sign of a Potential Bottom and Bullish Rebound

A significant 11.32% drop in Bitcoin’s seven-day Open Interest (OI) signals aggressive deleveraging, an historical pattern that often precedes robust recoveries. This move follows a 16% pullback from its highs of $126,300 to the current price of around $105,000, with potential for BTC to rally towards $120K if resistance at $110K breaks. Despite some bearish moves in the market and concerns about inflation, Bitcoin’s on-chain resilience shows continued accumulation from holders and ETF inflows. While a break below $100K could lead to further declines, hitting support levels at $72K is seen as unlikely by analysts.