The post Bitcoin rebound lacks conviction as open interest signals range-bound market appeared on BitcoinEthereumNews.com.
Bitcoin’s latest recovery toward $69,700 is unfolding with almost no change in futures open interest, a pattern CoinGlass says fits a range-bound, leverage-heavy market rather than the start of a durable bullish trend. Summary CoinGlass notes that open interest rose as Bitcoin fell to about $68,750, signaling shorts adding into weakness, then barely changed during the rebound near $69,700. BTC now trades between a long-liquidation pocket below $66,827, where roughly $1.878b in longs sit, and a short-squeeze zone above $73,757 holding about $1.062b in shorts. Macro headwinds, a VIX spike to 25.44, Middle East tensions, and BlackRock’s $140m Coinbase Prime deposit leave traders watching price–OI alignment for the next real trend. Bitcoin’s (BTC) recent price recovery is showing signs of weakness under the hood, with on-chain and derivatives data suggesting the rebound is not backed by genuine buying demand — and that the market may be settling into a period of directionless consolidation rather than staging a meaningful trend reversal. That is the assessment of CoinGlass, a leading crypto derivatives analytics platform, which flagged a telling divergence in Bitcoin’s open interest data during the most recent price swing. According to the firm, during yesterday’s decline, Bitcoin’s open interest actually increased as the price fell — a classic signal that short sellers were actively adding new positions into the weakness rather than capitulating. The move ultimately found a floor around $68,750 before prices bounced. However, the subsequent recovery has done little to shift the underlying picture. Open interest has shown almost no significant change during the rebound, which CoinGlass interprets as a sign that the recovery is not being driven by an influx of new long positions. In other words, buyers have not stepped in with conviction — the price has risen, but the market has not built fresh bullish infrastructure…