[Analysis] Bitcoin Faces Continued Short-Term Selling Pressure as Open Interest Climbs

• Bitcoin fell 1.49% from $79,900 to $78,743, indicating that selling pressure is dominating in the short term.
• He said open interest (OI) increased during the price decline, signaling that new short positions are joining the downward move.
• Still, he said the short-term outlook remains bearish, but current prices remain well above levels seen before August’s rally, making it hard to say this correction alone has changed the broader market trend.

Forecast Trend Report by Period

Bitcoin has fallen nearly 1.5% over the past two days, with selling pressure continuing to outweigh buying interest in the short term, according to on-chain analyst Axel Adler Jr.

In a newsletter published on September 8, Adler wrote that Bitcoin fell 1.49% to $78,743 on September 8 from about $79,900 on September 6. Even so, he said the broader trend has not yet shifted into a downtrend.

A gauge measuring buy and sell order pressure turned negative from +3.82 on September 6 and remained below zero for 46 hours. The latest reading recovered to -3.19 from a low of -5.28, but selling pressure still remained dominant.

Open interest, or OI, also increased during part of the price decline. Adler said rising open interest while prices are falling can be interpreted as a sign that new short positions are adding to the downward move.

The short-term outlook remains bearish, Adler said. Still, he wrote that current prices remain well above levels seen before August’s rally, making it difficult to conclude that this correction alone has changed the broader market trend. He added that a sustained recovery in buying pressure and a halt in the price decline would be the key signals for a short-term rebound.

Source: en.bloomingbit.io