Bitcoin (BTC) sellers are pinning their hopes on standing to come across sub-$10,000 prices in the backwash of the halving based on five primal futures market metrics.

The five measures are open involvement, funding, long and shorts delta, surly divergences, and liquidity take hold of at $10,000.

Open Interest on major Bitcoin futures exchanges stagnant

The open up interest — the total amount of long or short contracts open in the market — of Bitcoin futures contracts on BitMEX, Binance Futures, Bybit and other futures exchanges is struggling to increase.

On May 10, when the price of Bitcoin abruptly dropped from $9,570 to $eight,100 on BitMEX but hours earlier the halving, it liquidated effectually $200 million worth of longs in a single hour.

At the fourth dimension, the open interest of BitMEX dropped essentially every bit many long contracts were either liquidated or forced to suit their positions.

On May fourteen, the toll of Bitcoin similarly rejected at $ix,900, dropping to as low equally $9,200 overnight. The rapid pullback caused $42 million to be liquidated. Within a v-mean solar day span, at least $270 million worth of longs were liquidated on BitMEX alone.

Bitcoin rejects $ten,000 and $ix,900. Source: Tradingview

Following the two sell-offs, the appetite of investors in the futures market to enter a trade seemingly declined. Information technology could potentially bespeak that buyers are showing signs of exhaustion as selling pressure builds up at a primal resistance level of $10,000.

Imbalance of long and short contracts

Across iii major futures exchanges Bitfinex, Binance Futures and BitMEX, long contracts account for approximately 72.37% of full open involvement.

As of May 15, around $661.7 million worth of long positions are open just only $252 one thousand thousand in short positions are filed. The large gap between long and shorts at a multi-year resistance area leaves Bitcoin vulnerable to a possible long clasp.

Total Bitcoin longs and shorts in the market. Source: Blockwhisperer

In the past week, Bitcoin experienced two major long squeezes in brusque time periods. Yet, the market place is yet heavily swayed towards longs and that means there is a lot of liquidity to be taken in the mid-$nine,000s.

Bearish divergences popping upward

The Relative Forcefulness Index (RSI) is a momentum oscillator that measures whether Bitcoin is overbought or oversold.

According to a technical analyst known as "CryptoCapo," when the RSI of Bitcoin decreases while the toll rises, it is considered to be a bearish difference.

A bearish divergence that emerges in an extended price movement suggests that a sizable correction may occur.

Bitcoin shows bearish divergence. Source: CryptoCapo

The declining RSI and the slowing volume of Bitcoin in both the futures and spot markets could lead to dwindling momentum in the near-term.

Liquidity taken near $x,000

For large traders, liquidity in a relatively small market is fundamental. The toll of Bitcoin typically moves in extreme cycles considering whales seek liquidity at a significantly low or loftier toll point.

When the price of Bitcoin rose from the $9,000 to $10,000 range and rejected information technology presently thereafter, BTC captivated big sell orders primarily on OKEx and BitMEX.

The absorption of sell orders at a pivotal range of resistance and two abrupt rejections within a five-day bridge increases the probability of a connected downtrend.