Despite the dominance of bears in the last three weeks, Bitcoin is showing signs of recovery. The recent rise in open interest may indicate a potential bullish reversal.
Growth in Open Interest
CryptoQuant analyst ShayanBTC reports an increase in open interest in Bitcoin, despite its struggle to find bullish footing. This may indicate the onset of recovery. In the last three days, the price has increased from $93,34 to $97,010.
Demand Dynamics for Bitcoin
Although spot flows have been negative since the start of February, the reduction in outflows gives bulls a chance. On the derivatives market, futures open interest bounced back above $60 billion. Exchange flows also dropped to the level where a rebound was observed in January.
The Role of Strategy in Market Support
Michael Saylor's company plans to issue $2 billion worth of convertible notes to purchase Bitcoin. This liquidity injection could help the price recover above $100,000.
Positive trends in the Bitcoin market and plans for further liquidity injection could contribute to sustainable recovery.
