Analyst considers plunge in BTC open interest an essential stage for maintaining bullish momentum

The massive liquidation of Bitcoin (BTC) leveraged positions is an important stage for the continuation of a bull market, crypto analyst Darkfost wrote in a post on CryptoQuant. BTC open interest hit a record high of more than $33 billion on Jan. 17. The subsequent market panic, however, led to a massive liquidation of approximately $10 billion in BTC open interest between Feb. 20 and March 4. Currently, BTC futures open interest stands at around $23 billion, a 14% decrease over the past 90 days. Historically, "each past deleveraging like this has provided good opportunities for the short to medium term," the analyst highlighted.