Bitcoin price sustains above $41,000 as whales strategically position for next BTC move

Bitcoin price declined throughout last week. The largest asset by market capitalization, is struggling to keep its head above volatile waters, at $41,000. At the time of writing, BTC price is $41,101. Crypto analysts expect a bounce from the current price level, if the asset fails to rally, further correction in BTC price is likely. 
Whales on one of the largest derivatives exchange, Bitfinex, have likely positioned themselves for a shift in Bitcoin trend. This is evident from the sudden decline in Open Interest and an increase in stablecoin reserves on the exchange.

Daily Digest Market Movers: Bitcoin whales position for a shift in BTC price

• Crypto market participants track the moves of large wallet addresses on derivativ8es exchanges like Bitfinex, since this helps determine the direction of BTC price, in the short term.  
• According to CryptoQuant data, whales on Bitfinex have closed their leverages positions and Open Interest in BTC has declined by nearly 21%. 

Bitcoin Open Interest and price. Source: CryptoQuant

• The Open Interest in an asset is considered a key metric that represents the total value of open derivatives contracts, likely the investor confidence in BTC price decline is low.
• Bitcoin price dropped nearly 2% in the past week and nearly 7% on a monthly time frame. 
• While Bitcoin ETFs continue to attract billions of dollars in volume, the effect is yet to be seen on BTC spot prices. 
• To find out more about the reasons Bitcoin price is on a decline, check this post. 
• There is a correlation between Bitfinex Open Interest and Bitcoin price, and this is one of the key reasons why whale movements on the derivatives exchange are of importance to BTC traders. 
• If the Tether exchange reserves continue rising, in tandem with declining OI, it is likely a bearish indicator for Bitcoin price. A correction in Bitcoin could follow as derivatives traders close their leveraged positions. 

Technical Analysis: Bitcoin price could bleed if it fails to bounce from $41,000

Mark Cullen, a crypto analyst on X (formerly Twitter) expects Bitcoin price to bounce from $41,000. If BTC fails to bounce from this level, Cullen predicts a correction in the asset. A bounce from the current level could send Bitcoin above $44,000 and a correction could push BTC to $39,080. 
Bitcoin price chart