However, some metrics like the MVRV ratio and long-short difference have declined. These indicators suggest that short-term holders may be increasing in number. This could lead to more volatility in the market, as short-term traders tend to react quickly to price fluctuations.Bitcoin’s open interest fell which could affect trading dynamics and market sentiment.
A decrease in open interest can imply reduced speculative activity or uncertainty in the market. Traders may be taking a cautious approach in response to recent price movements.In terms of trader sentiment, long positions slightly outnumber short positions, indicating a cautious optimism among market participants. While more traders are betting on the coin’s price to rise, the margin is narrow, suggesting that there is still a degree of uncertainty in the market.