BTC Today’s selloff was driven by both continued spot selling and longs being closed. Open interest decreased significantly during this dump, suggesting that a lot of excessive leverage has been flushed out of the market. This leaves us with somewhat mixed signals. On one hand, it’s healthy to see some of the longs that were opened during the recent rally getting taken out. On the other hand, spot demand still remains pretty weak. However, this dynamic can change quickly. If spot buyers start stepping back in while open interest remains cooled off, momentum could shift back in favor of buyers very quickly.