The price of bitcoin (BTC) refused to contain the recent losses during January 22, when predictions of a drop to $33,000 and even lower seemed increasingly likely to come true.
Open interest “has not disappeared yet”
The data from Cointelegraph Markets Pro and TradingView followed the BTC/USD pair as it fell through $35,000 during the early hours of Saturday..
With little chance of a favorable situation in this scenario for the bulls, the weekend’s low volume was set to deliver some classic erratic moves after bitcoin price lost support at $40,000 on friday.
While some, notably El Salvador, took advantage of the new lower levels, others expressed concern that despite the drop, pressure remained on the bulls.
“The crazy thing is that open interest has not disappeared yet“, He said trader and analyst William Clemente, one of many market participants who point out that derivatives traders are still trying to fight the trend.
“After all this carnage and the absolute state of panic, funding is not giga negative, futures are not pulling back and open interest is barely down“. These are interesting times. And by ‘interesting’ I mean poverty,” jokingly pointed the popular Byzantine General Twitter account.
RSI dips to March 2020 COVID lows
The Relative Strength Index (RSI, for its acronym in English) of bitcoin in the day provided a slight relief, when fell to its lowest levels since March 2020.
At the time, the BTC/USD pair dipped as low as $3,600 before staging a rally that would last well into the following year.
The daily RSI stood at just 20 on Saturday, well below even the classic “oversold” zone..
“A bit more reliable than bitcoin on its own -> total market capitalization is at the next level of support, while the daily RSI hits the lowest level since March 2020“, commented Cointelegraph contributor Michaël van de Poppe on the situation.
“Equity sentiment is also at the lowest level since March 2020. That says it all.”
Stock markets had taken a hit towards the end of the week, with technology stocks particularly in the line of fire and cryptocurrencies once again showing the extent of their positive correlation.
Keep reading: