This is classic leverage flush.
$BTC price (yellow) dropped hard… and Open Interest (blue) collapsed with it. That tells you this wasn’t just spot selling this was forced liquidations. Positions got wiped.
When price falls + OI drops sharply:
• Overleveraged longs get liquidated
• Excess speculation gets cleaned out
• Market resets positioning
Notice volume spike during the dump that’s panic + forced selling.
Now the important part:
After big OI flushes, markets often stabilize because weak hands are gone. The question is whether OI rebuilds slowly (healthy) or spikes aggressively again (overheated).
Right now:
Leverage is lower.
Sentiment is shaken.
Structure is cleaner.
Big drops with OI wipeouts often mark local bottoms not guaranteed, but historically common.
Watch if BTC holds key support while OI starts curling up gradually. That’s when recovery phases begin.
#PEPEBrokeThroughDowntrendLine #HarvardAddsETHExposure #StrategyBTCPurchase
