Bitcoin May Face Short-Term Pressure but Deep Retracement Seems Unlikely as Open Interest Hits Record High

Key Points

1. Bitcoin's price dipped to $114,518 after peaking at $118,972, stabilizing around $115,692, reflecting profit-taking and short-term volatility.

2. Analyst Justin Spittler notes that while Bitcoin may revisit $113,000 support, a deep retracement is unlikely due to the market's underlying strength.

3. Altcoins like Ethereum showed resilience during Bitcoin's correction, with ETH/BTC gaining nearly 1% and Ethereum surpassing $3,700.

4. Bitcoin's open interest in derivatives markets hit a record $44.5 billion, indicating potential for significant price movements and heightened volatility.

5. A drop below $114,000 could trigger $1.78 billion in long liquidations, adding to short-term market pressure.