Due to recent market action, Bitcoin (BTC) is now oversold, which means that its price volatility has decreased.
Bitcoin has gained a small 0.6% in value over the last 24 hours. It is now worth $58,180 and has a market value of $1.14 trillion. Trading volume has increased by 42% to $29.5 billion, which shows that the market is more active than usual.
Santiment says that in the last day, BTC’s total open interest has dropped from $10.29 billion to $10 billion. This is because $148 million worth of BTC has been liquidated. Coinglass data shows that during the same time period, $100 million was liquidated from short positions and $48 million was liquidated from long positions.
Bitcoin OKX liquidation $22.24M
The most significant single liquidation was $22.24 million on the OKX exchange.Bitcoin prices tend to be less volatile when there is less open interest, which can be seen as the number of transactions going through bankruptcy drops.
According to Santiment, Bitcoin’s Relative Strength Index (RSI) is at 30, which means that the price has been sold too low. When put together with falling open interest, this points to a possible short-term price rise.
According to Santiment data, Bitcoin’s whale activity—transactions involving at least $100,000 worth of BTC—has dropped significantly since July 5, when it fell below $54,000. It has gone from 11,648 transactions to 6,063 transactions as of now.
Recent market downtrends were mostly caused by big drops in Bitcoin over the last three weeks. These drops were caused by actions taken by the U.S. and German governments, as well as activities related to the now-defunct Mt. Gox exchange that involved more than $1 billion worth of BTC since June 19.
