Bitcoin is approaching a $122,000 price level as open interest has recently declined by 8%, suggesting potential challenges ahead.

Trader Activity and Bitcoin

Traders are currently reducing their exposure to Bitcoin, which is a significant observation in the market.

Impact on Leverage and Metrics

This reduction in exposure is causing a weakening of Bitcoin’s leverage and on-chain metrics.

Potential Market Consolidation

The observed trends suggest a possible period of consolidation for Bitcoin in the near future.