Bitcoin Slips Below $92K as Short Positions Surge, Bearish Momentum Builds

Bitcoin (BTC) extended its downward move overnight, dipping below $92,000—an area that has acted as strong support since December. However, this latest decline comes with a significant rise in futures open interest, indicating increased bearish positioning.

According to Coinglass data, Binance’s BTC/USDT perpetual futures saw open interest climb by approximately 12,000 BTC (over $1 billion) as Bitcoin’s price fell from $96,000 to below $92,000. A rise in open interest during a price decline typically suggests an influx of fresh short positions, with traders betting on further losses.

Additionally, the cumulative volume delta (CVD) for both futures and spot markets has turned increasingly negative, reinforcing the dominance of sellers over buyers.

Bearish Candlestick Pattern Signals More Downside

Monday’s 4.86% decline resulted in Bitcoin forming a bearish marubozu candlestick—a technical pattern that signals aggressive selling pressure throughout the trading session. The lack of upper and lower wicks suggests buyers had little influence over price movement.

With BTC trading below its 50- and 100-day simple moving averages (SMA), this bearish pattern may encourage further downside.

Key support (S) levels to monitor include $89,200, the Jan. 13 low, and the 200-day SMA at $81,661. On the resistance (R) side, the Feb. 21 high of around $99,520 remains a critical level to break.