Key Takeaways
Bitcoin hovered near $108K as Google searches spiked. Open Interest hit $38.7 billion and Dominance slipped to 57%. Is $105,755 the next stop for BTC?
Bitcoin [BTC] recorded one of its weakest performances in recent months as it fell to about $108,400 at press time.
Analysis showed that despite the current drop, there may be room for a rebound in the coming days. Naturally, derivatives interest added intrigue, with investor positioning climbing even as price slipped.
Google searches mark opportunities
An analysis of Google Trends for crypto-related topics and entities showed a significant spike in search activity. Historically, such surges have coincided with market peaks, signaling short-lived euphoria.
According to Alphractal, smart investors usually take advantage of this level to sell, since it often signals a temporary market top.
In fact, groups of investors often sold into strength at these peaks before re-entering at lower levels.
Derivatives and dominance steer the debate
Bitcoin’s Open interest (OI) rose notably, capturing the total number of unsettled derivative contracts in the market.
At press time, OI stood at $38.7 billion, while Bitcoin’s price remained flat. Having said that, the divergence suggested consolidation or indecision.
Source: TradingView
Meanwhile, Bitcoin Dominance slipped to 57%, down from 60.8% highs.
This decline suggested that Bitcoin may continue without notable price movement for now, until dominance rises again, which would imply more liquidity flowing into the asset.
Source: CoinMarketCap
On the chart, Bitcoin traded at a precarious position, as the price had entered a demand level that previously acted as a catalyst for upward surges.
However, the $111,917 ceiling capped every attempt at recovery. If that barrier rejected price again, renewed selling pressure could emerge.
Source: TradingView
Notably, if the demand zone broke, downside could stretch toward $105,755, the next visible support. At this stage, the market faced the critical question: where is Bitcoin heading next?
Spot vs derivatives: who wins?
Opinions remain divided on whether Bitcoin’s next move will be a rally or a further drop. Derivative data—particularly the Funding Rates—indicates growing bullish sentiment.
At the time of writing, the rate stood at 0.0074%, signaling that there are more long positions than shorts. In this setup, longs pay funding fees, a tendency that occurs when the market favors their direction.
Source: CoinGlass
On top of that, spot flows told a different story. Exchange Netflows showed about $60.7 million in BTC outflows at press time, reflecting selling by spot holders.
Until one camp asserted dominance—derivatives or spot—Bitcoin’s price was likely to stay range-bound.
