Bitcoin saw a brief surge, rising by 2.6% to reach $110,000 before settling at $109,162. This rise was accompanied by a significant decline in Bitcoin’s Open Interest, dropping by $1 billion. This large-scale unwind of positions suggests that investors are exiting the market strategically. CryptoQuant analyst Axel Adler notes this drop and predicts further price declines, potentially leading to a retest of the $107,000 support level. 2.6% rise was followed by a pullback as the Open Interest reduction led to negative net taker volume, indicating sellers dominated the market. The Taker Buy Sell Ratio also dipped into negative territory for the first time in four days, signaling a seller-led market dynamic. This trend is reflected in increased exchange inflows of 1.2k BTC at press time, suggesting investors are transferring their coins to exchanges. 50% sell pressure was noted, with Bitcoin’s Spot CVD remaining positive, indicating high profit realization for traders in the spot market, while Futures Market traders chose to reduce leverage and this led to a downward pressure on prices as most traders were selling. These market dynamics suggest caution as some investors anticipate further price drops. If current conditions persist, Bitcoin could retest the $107k level, which has previously served as resistance. However, if bulls maintain higher resistance levels, they could start buying again and absorb the pressure from the Futures market. If this happens, the market might reclaim the $110k mark and potentially target $112k in the near future.