Break in the Storm

Crypto Compass 26

Key Takeaways:

• Open interest indicates no clear direction despite a strong move and crucial retest at $27.2k.

• High open interest suggests the potential for liquidation squeezes but lacks clear signs of liquidity driving the price.

• Options market sentiment favors calls, while TradFi shows a higher likelihood of extreme returns. BTC remains dominant in the altcoin cycle signal.

Reads we like and recommend:

Ecoinometrics

dive into “Corporate isn’t stacking sats” and from

CryptoCon

a look into “The US Government Declares War on Crypto”.

• Bitcoin’s Bollinger bands depict the current state quite accurately. We remain within the accumulation zone (between the lower band and the 20-day moving average), suggesting it’s still a good entry point.

• However, we must consider the expanding bands (higher volatility), which could lead to abrupt moves.

• Despite the strong and crucial move yesterday ($27.2k retest), open interest suggests that there is no clear direction. We believe that the price will continue to consolidate alongside open interest until we approach the FOMC and the market begins to position for the expected output.

• Open interest remains relatively high -