•Polygon (MATIC) gained over 30% in the first half of July but retraced in the second half of July.
•Bitcoin (BTC) was below the previous range-low of $29.5k, exposing it to a 3.5% monthly loss at the time of writing.
•Bulls and bears fought to control the 50% Fib level ($0.70) while open interest rate hit a high of >$180 million at the price peak in mid-July and declined to around $150 million at the time of writing, illustrating bearish bias and a drop in demand in the futures market over the second half of July.

Analysis: Polygon Reverses July Gains

Polygon [MATIC] saw impressive performance and price gains in the first half of July, rising from $0.65 to $0.90, but pullback that followed threatened to retest July lows. Bitcoin [BTC] was below its previous range-low of $29.5k exposing it to >3.5% monthly loss as of time writing, further weakening Polygon’s position against BTC’s decline.

Fibonacci Support Level Under Threat

Bulls and Bears were fighting for control over 50% Fibonacci support level ($0.70), with RSI struggling above neutral level and wavering Chaikin Money Flow pointing towards capital inflows fluctuating on MATIC’s market volatility.

Open Interest Rate Declining

Open Interest Rate hit a high of >$180 million at peak prices which later declined to around $150 million as bearish bias took hold amongst traders, signifying decreasing demand for MATIC futures contracts amid uncertain times for both MATIC and BTC markets alike.

What’s Next?

Should bulls fail to defend 50% Fibonacci support level ($0.70), then a drop towards 38.2% Fibonacci level ($0,.655) could be feasible if BTC continues on downward trajectory below $29k; Conversely, should BTC reclaim its former position above $29k then MATIC could target immediate resistance levels of 61/8 % Fibonacci Level ($0,.75) or 78/6 % Fibonacci Level ($0,.81).

Conclusion

Investors should watch how BTC price action unfolds before making any decisions regarding their investments in MATIC as bearish bias still dominates among traders yet liquidation data is flashing mixed signals on lower timeframes as well – suggesting that bulls may still have some fight left yet should they manage to defend 50% Fibonacci support level current situation might change drastically soon enough