Recently, there is a clear signal in the market worth noting—the total open interest of contracts across the entire network has dropped to 128.1 billion, which is basically back to the level at the end of 2024. The number still sounds quite large, but the problem is that liquidity is starting to become tight. To put it simply, contract trading is not very easy to sell right now. Market depth has shallowed, which means any slightly larger order can easily break through support. This environment indeed requires traders to be more cautious. By the way, a small surprise today—the trading volume of ZKC surprisingly broke through the 10 million mark, which is a bright spot in a cold market. The performance of BTC and ETH contracts remains volatile, and these two mainstream coins still attract most of the market attention.

Bitcoin's recent performance has indeed been less strong than expected. According to previous analysis, the 86700 level is a key support, and the rebound space once broke through $1600. However, from yesterday to today, the rebound strength at this level has been diminishing, which usually indicates that the bulls' energy is gradually being exhausted. The next trading strategy is as follows: if 86700 is not effectively broken and the price recovers here, then continue to go long on the rebound. But once this support is truly broken, it’s time to look downward, and the new support zone could be between 85000 and 84000. More importantly, there is a critical threshold near 89700 on the four-hour chart. This is a very key resistance level, and it’s necessary to see whether Bitcoin can break above it strongly. The performance at this level will largely determine the subsequent direction.