Sharp drop in BTC open interest may signal market bottom

A sharp decline in Bitcoin (BTC) open interest may indicate that the market is establishing a bottom, Cointelegraph reported, citing CryptoQuant contributor Darkfost. The analyst noted that BTC open interest plummeted to 1.3 million BTC on Nov. 23, marking the steepest 30-day decrease of the current cycle. This trend suggests that traders are closing their perpetual futures positions to reduce risk amid ongoing forced liquidations driven by recent price drops. According to the analysis, such movements have historically been followed by the formation of a solid market bottom and the beginning of a new bull run.