Bitcoin Recovery: $55B of BTC Futures positions Unwound in 30 Days

Bitcoin’s (BTCThe struggle of the Bitcoin price to stay above $70,000 continued into Wednesday. There are fears that a fall into the $60k range may be next. Aside from futures markets liquidations and a drop of $55 billion in BTC OI over the past thirty days, there was also a rise in Bitcoin exchange inflows.

Analysts are debating if macroeconomic factors, or crypto-specific issues are driving the price decline and what this may mean for BTC in the short term.

The key takeaways 

• In 30 days major exchanges have sold 744,000 BTC worth of open interest, which is equivalent to $55 billion in current price.

• BTC Futures Cumulative Volume Delta (CVD), fell by 40 billion dollars over the last six months.

• The crypto exchange reserves increased by 34,000 BTC between mid-January and now, which increases the supply risk in near term.

BTC open interest collapse points to large-scale deleveraging

CryptoQuant data noted Bitcoin’s 30-day change in the open interest across all exchanges shows a contraction, which reflects widespread closings of positions, and not just newly opened shorts. 

Binance has seen its net interest drop by 276.869 BTC during the past month. Bybit saw the biggest drop at 330 828 BTC. OKX also experienced a decline of 136 732 BTC.

Total open positions worth about 744,00 BTC were closed. This is equivalent to over $55 billion in current prices. The drop in open position coincided with Bitcoin dropping below $75,000. This indicates that deleveraging was the driving force behind this drop, and not only spot-selling.

Boris Onchain is an analyst at Onchain highlighted The cumulative volume delta data (CVD), which shows that market selling orders are still dominant, is particularly evident on Binance where the derivative CVD has been around -$38billion over the last six months.

The dynamics of other exchanges are different: Bybit CVD has flattened out near $100 after a December wave of liquidation, while HTX CVD is stabilizing at -$200m as CVD prices consolidate near $74,000.

Related: Bitcoin bounces to $76K, but onchain and technical data signal deeper downside

As analysts keep an eye on key levels, increased flows of exchange adds pressure.

Inflow of Bitcoins into exchanges surged Binance led the way with 756,000 BTC. Since February 1, inflows are over 137,000 BTC. This indicates that traders have not left the market, but rather repositioned themselves.

Axel Adler Jr., an analyst on the supply-side of things. noted The exchange reserves are now 2.752 BTC up from the previous 2.718 BTC. This is a rise of 7% since January 19. Analyst warned continued growth over 2.76million BTC may increase the selling pressure. Analyst said It is possible that the price level will drop to a lower value.

Market Analyst Scient said Bitcoin’s bottom is not likely to be formed in one single day, or within a short period of time. Market bottoms can be formed after two or three months near major support zones and using higher timeframe indicators. Scient stated that it is unclear whether the structure will form in the $60,000 or $50,000 range.

Bitcoin Trader Mark Cullen continues After BTC’s weekly low of $74,000 was broken on Tuesday, we expect a short-term return towards the point of control (between $89,000 and $86,000). 

Related: Bitcoin’s $68K trend line seen as potential BTC price floor: Traders