Bitcoin Open Interest climbs before CPI – Is $82K next for BTC?

From Thursday, the 3rd of September, to Tuesday, the 8th of September, Bitcoin [BTC] underwent a 5.7% retracement, falling from $82,300 to $77,620. Within the past 24 hours, this short-term retracement has begun to reverse.

Bitcoin is already up 2.4% from the local lows. Moreover, in recent days, the Bitcoin Open Interest has begun to pick up. It showed market participants are entering the derivatives market in increasing numbers.

It could be a sign of a local low. The market sentiment remained in greedy territory, but this week could bring heightened volatility with the CPI report and rate hike expectations.

The $82k supply zone has not yet been convincingly overturned, either. Long-term holder behavior suggested profit-taking.

The surprising Bitcoin reaction to selling pressure

The 30-day change in long-term holder supply had been positive in July, but the trends began to shift around the start of August. As Bitcoin rallied higher past $75k, the LTH supply grew more negative.

Since the start of August, the long-term holder supply has fallen by 98.5k BTC, observed crypto analyst Axel Adler Jr. It was a sign of profit-taking and sell pressure on the market.

The rally beyond $80k saw the Spent Output Profit Ratio cross above one to reach 1.14 in September. In other words, long-term holders’ realized profits exceeded realized losses, another indication of profit-taking.