Bitcoin has slid to $66,000 as a wave of forced selling hits traders betting on higher prices. Open Bitcoin positions on Binance have fallen to their lowest level since August 18.
The drop in open interest reduces the number of leveraged traders exposed to sudden losses, which could leave room for a healthier market recovery. However, rising leverage on other exchanges and increasing Bitcoin deposits to Binance point to further selling pressure.
Open Interest on Binance Falls to $8.3B
At the time of writing, Bitcoin was trading at $67,147, down 2.10% over 24 hours. The decline followed $BTC's drop below the key $70,000 level, as economic pressure, weak institutional demand and forced liquidations intensified selling.
According to Santiment, Bitcoin open interest on Binance has fallen to $8.3 billion, down from $11.2 billion in August. The decline followed liquidations of bullish traders as Bitcoin dipped under $68,000. Other exchanges, however, are showing a different trend.
Traders Are Moving Their Positions to Other Exchanges
CryptoQuant analyst FundingVest noted that open interest is rising on several exchanges even as it declines on Binance.
Over the past 30 days:
- OKX open interest increased by 17%.
- Bybit increased by 14%.
- Gate.io increased by 13%.
- Binance declined by 3%.
- Deribit declined by 17%.
FundingVest explained that if leverage were increasing across the entire market, Binance would likely reflect that growth because it is the largest cryptocurrency exchange.
The analyst further linked Bitcoin's failure to sustain its rally at $87,000 to a lack of fresh trading activity. With fewer buyers entering the market, Bitcoin became increasingly vulnerable to downward price moves.
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Retail Investors Are Driving Bitcoin's Decline
Another CryptoQuant analyst, GugaOnChain, believes Bitcoin's latest decline is driven by smaller investors and forced liquidations rather than heavy institutional selling.
The analyst pointed to the Coinbase Institutional Flow Pulse (IFP), which stood at 6.74K. This reading indicates relatively weak institutional activity in the US spot market during the decline.
In simple terms, smaller investors and leveraged traders are contributing more to the current selling pressure.
GugaOnChain explained that an IFP reading above 50K would signal a stronger return of institutional investors to the market, which could support a recovery.
More Bitcoin Deposits to Binance Raise Selling Concerns
Meanwhile, CryptoQuant analyst Amr Taha reported that short-term Bitcoin holders (one week to one month) deposited 2,976 $BTC into Binance on November 11, the highest daily inflow from this group in four months.
This followed another 1,925 $BTC deposit on November 9, bringing the two-day total to 4,901 $BTC. Long-term holders (two to ten years) also deposited 508 $BTC on November 11.
These rising exchange inflows contributed to selling pressure that saw Bitcoin lose the $70,000 region.
Can Bitcoin Recover to $72,000?
Santiment believes Bitcoin needs to reclaim the $70,000–$72,000 range to restore positive market momentum. A recovery above these levels could strengthen market confidence and encourage traders to return.
More importantly, a sustainable recovery would likely require genuine Bitcoin buying demand rather than excessive borrowing and leveraged trading. Strong spot market demand could provide a healthier foundation for price growth.
Here are the important price levels to watch:
- $67,395–$68,144: Bitcoin needs to recover this range to show that buyers are regaining control.
- $70,000–$72,000: Reclaiming this range would strengthen market sentiment and support a broader recovery.
- $66,441–$64,166: Bitcoin must hold above $66,441 to avoid further losses, with $64,166 serving as the next downside target if support breaks.
Ultimately, the next major test is whether buyers can push $BTC back above $70,000–$72,000 or whether continued selling drives the price toward $64,166. Bitcoin ETFs, a major source of institutional buying demand, have recorded consecutive weekly outflows, with more than $2.5 billion withdrawn over the past three weeks.
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Related: Bitcoin Drops Below $70,000 as Van de Poppe Maps a Possible Rebound
