According to analysts, Bitcoin open interest is on the decline and has outpaced the token’s price loss, indicating waning investor confidence and interest amid ongoing high volatility.
Trading volume over the weekend was also lower than usual, suggesting that the recent small sell-off lacked strong downward momentum, according to BRN analyst Valentin Fournier.
Fournier stressed that the market is expected to be volatile throughout August and September. He predicts that Bitcoin could fluctuate in a wide range between $49,000 and $69,000, adding: “Bitcoin has more room to expand before it drops back into a lower range.”
Last Monday, the BTC futures funding rate turned sharply negative. However, Coinglass data shows that the funding rate has turned positive again since Friday, with investor sentiment shifting towards a more optimistic outlook.
Bernstein analysts say the recent decline is largely due to the US elections, which they say accelerated after Kamala Harris made a big jump in the polls.
*This is not investment advice.