$BTC The open interest is stabilizing, but funding rates remain positive, indicating a long-term positioning.
This week's recovery has been supported by the increase in open interest during the first phase of the rise, although yesterday's gains did not attract additional positioning. The volume on the hourly chart has decreased since Bitcoin reached the Fibonacci midpoint, indicating weaker participation at the peaks. The long-to-short ratio remained stable between 1.6 and 1.7 throughout yesterday, and both aggregated funding and expected funding are above zero at +0.0039 and +0.0028. Positive funding indicates that long traders are paying shorts and reveals that positioning is now primarily focused on long positions. The change in sentiment aligns with the improvement in recovery, but the lack of volume expansion near the midpoint reduces conviction in the immediate movement.
Overall, the stabilization of open interest, the drop in volume at the resistance level, and positive funding explain today's intraday consolidation. Buyers have not added new positions at the Fibonacci midpoint, and those already in long positions are paying to keep their positions open. This creates a pause as the market awaits stronger participation. A breakout above $94,200 will require new volume and renewed interest in long positions, which would confirm the continuation of December's recovery. The inability to attract this participation could lead to a short-term pullback to the 20-day EMA at $92,300 before buyers attempt a new move towards the midpoint.
