Bitcoin could avoid $ 118k correction while the BTC Futures Market re -seized the foot

Key Takeaways:

• The BTC price can drop to the $ 118,000- $ 120,000 range before continuing its u, analysts.

• The Bitcoin Futures Open Interest fell $ 4.1 billion from its climax, which potentially indicates a “healthy” reset.

Bitcoin (Btc) dropped by 3.7% from $ 126,000 all-time high and could revisit the $ 118,000 level over the next few days, but data suggested that the long-term trade below that level could be short-lived.

Bitcoin may go down to $ 118,000 first

Bitcoin’s price traded at $ 121,300 on Friday, after posting moderate losses in the past 24 hours, data from Cointelegraph Markets Pro and Tradingview shown.

While the Macro’s prefunction remains bullishAnalysts agree that the BTC/USD pair may first drop to $ 118,000- $ 120,000 before continuing its climb.

Related: Bitcoin Mayer Multiple: The BTC price can hit $ 180k before becoming ‘overbought’

“Here we go with the shaking on both sides,” Says Analyst Stockmoney Lizards, added that such price action is normal after Bitcoin has hit new all-time highs.

“This flush should end soon, around $ 118,000- $ 119,000, then higher,” the analyst added.

“$ BTC seems to want to retest $ 118,000- $ 120,000 support levels,” both Analyst Ted Pillows Says In a post on Friday at X.

The analyst noted that strong bids are present at the exchanges at this level, suggesting that the BTC/USD pair may potentially come down to it.

“After that, a rally is expected if consumers enter.”

Meanwhile, the glassnode basis of glassnode distribution distribution Highlighting support near $ 117,000which about 190,000 BTC was last acquired.

MN Capital founder Michael Van de Poppe has a different perspective, dispute That bitcoin already has a correction following it Flash drop to $ 119,700 In the late New York trading session on Thursday.

“Ready to continue with new hours high.”

Similarly, Alphabtc Nakasa said The price is now that liquidity in the lower part, up to $ 118,000, along with businessmen dedicated to liquidity above $ 126,000.

Bitcoin Futures Oi dropped by $ 4.1 billion

Bitcoin’s Open the interest of futures (OI) experienced a $ 4.1 billion collapse as BTC prices fell to $ 119,700 from $ 126,000, data showed from coinglass.

It can be considered as a healthy market reset, as it reflects the extermination of overleveraged positions, reducing market euphoria.

Onchain data provider glassnode Says That while the Oi drops slightly from all this time, it “remains raised while both long and shorts are beaten by sharp price swings,” adding:

“The market is undergoing leverage reset, with volatility that has flushed excessive positioning on both sides.”

High OI often indicates over-leveraged trading, which can strengthen volatility. When a slight price collapse motivates a significant number of fluids, it eliminates the positions of speculation, stabilizing the market.

This article does not contain investment advice or recommendations. Every transfer of investment and trading involves risk, and readers should conduct their own research when deciding.