Charles Esther
Bitcoin faced a sudden decline below $115,000 on Monday, raising concerns of further downside pressure.
Market analyst Varma explained that significant open interest emerged during the same period when liquidity was swept from the market.
Open Interest Rises as Liquidity Swept
According to Varma, this sudden increase in open interest at the liquidity sweep zone will likely act as a strong support level.
Both long and short positions were triggered in the process, creating balance in the market.
Support Levels Strengthened
The analyst emphasized that the presence of heavy open interest indicates traders are actively defending this price area.
This may reduce the likelihood of further steep declines in the immediate short term.
Implications for Traders
For market participants, the zone around $115,000 now represents a critical level to watch.
Traders will closely monitor whether Bitcoin maintains support or if fresh volatility triggers another test of lower levels.
