Bitcoin price stalls as sellers step in – Will volatility cap BTC gains?

Bitcoin [BTC] has not experienced widespread holder losses, AMBCrypto noted recently. The percentage of long-term holders sitting on unrealized losses was not as high as previous cycle bottoms. This has deflated the enthusiasm that the market might have found a bottom after falling to $60k in February. Yet, over the past three weeks, Bitcoin's sustained defense of the $65k area and its push beyond $70k have given speculators confidence. The rising Open Interest (OI) in April pointed to more eager positioning in the derivatives market as Bitcoin pushed past $75k once more. The increased OI can also see price moves driven by liquidity hunts, as more leverage tends to accompany speculative confidence. This can result in increased volatility for Bitcoin, which has already faced bouts of high liquidations since tensions erupted in the Middle East. Profit-taking undermines Bitcoin enthusiasm In April, there were three days when BTC short liquidations were more than $200 million. Last month, there had been only one, the 4th of March. Mid-January saw two consecutive days, the 13th and the 14th, whose cumulative short liquidations for Bitcoin alone measured $440 million. Late January and early February saw the leading crypto dive lower as selling pressure ramped up. The short liquidations in April signal crowd disbelief and also helped push prices higher. It is possible that the rally might struggle to sustain itself. Crypto analyst Darkfost posted that BTC has traded within a range from $64k to $75k since the final week of February. As the crypto leader approaches and exceeds the local highs, the incentive to take profits and exit the market has only increased among holders. The analyst noted that 106k BTC flowed into the deposit addresses linked to Binance. Another 130k BTC flowed into OKX-linked deposit addresses. Usually, such an influx of BTC signals growing sell pressure from investors who might be exhausted by the losses and consolidation earlier this year. The market is at a difficult spot right now. Some participants believe that the rally can continue. Most remain fearful of another deep correction amidst the ongoing bear market conditions. Final Summary The rising Open Interest over the past three weeks signaled increased speculative confidence in BTC's bullish short-term trend. Rising selling pressure from coin movement to exchange deposit addresses meant the rally could see a retracement or even a reversal in the coming days.