Bitcoin extended its retreat for a second straight session, falling to $68,500 on Monday after touching $70,800 over the weekend. The move came after traders took profits following a rally that was supported by a softer U.S. inflation report. Based on the figures cited in the source, Bitcoin is now about 45% below its all-time high of $126,300.
Futures open interest drops to the lowest level since September 2024
Market demand has weakened in recent days, according to third-party data cited in the report. Bitcoin futures open interest fell to $43 billion on Monday, its lowest reading since September 2024. That is a sharp decline from last year’s peak of $95 billion, pointing to reduced leverage use and softer participation in the derivatives market.
The report also said liquidity may stay thinner this week because of the U.S. President’s Day holiday and the ongoing Lunar New Year period in China. It added that China remains one of the more active countries in the crypto sector even after Beijing banned these assets in 2020, which could make the holiday effect more visible in trading conditions.
Spot Bitcoin ETFs log a fourth straight month of losses
Fund flow data also weakened. Spot Bitcoin ETFs have lost more than $677 million in assets this month, marking the fourth consecutive month of declines. Over the last four months, total asset losses have exceeded $6.8 billion. With ETF demand fading and leverage cooling, the market has lost a key source of near-term support.
Traders are also watching incoming macro signals. The report highlighted upcoming Federal Reserve minutes and scheduled remarks this week from Raphael Bostic, Michele Bowman, and Neel Kashkari. The inflation data released earlier showed headline CPI easing to 2.4% in January, while core inflation held at 2.5%.
Daily chart shows a bearish pennant
On the technical side, the source said Bitcoin has formed a bearish pennant on the daily chart. Price was trading around $68,377 and had moved below all major moving averages, while also remaining under the Supertrend indicator. In that setup, sellers are still in control.
The pattern is described as a sharp downward move followed by a symmetrical triangle, often read as a continuation signal. In the scenario outlined by the report, a downside break would put the year-to-date low of $60,000 in focus as the next key level.