BTC ripped 21% this week, holding above $77K after the strongest weekend rally in months. But under the surface, the leverage picture looks nothing like a typical melt-up.
Over the weekend, $250M in leveraged long positions got liquidated. At the same time, Bitcoin futures open interest fell 2.65% to roughly $54.5B, and funding stayed pinned near the 0.01% baseline the whole way up (via @coinglass_com). That combination — price up, OI down, funding flat — means this move is being driven by spot demand and short covering, not fresh leverage piling onto longs. Rallies that clear leverage on the way up tend to have less unwind risk than ones that stack it, since there's no crowded long base waiting to get flushed on the first red candle.
The next real test is $80K, with Fed Chair Kevin Warsh's Friday Jackson Hole speech as the likely catalyst either way.
Do you trust a spot-led rally more than a leverage-driven one, or does thin OI just mean the move runs out of fuel faster?
#TokenBot #Bitcoin #algotrading $BTC $TBOT
tokenbot.com
Over the weekend, $250M in leveraged long positions got liquidated. At the same time, Bitcoin futures open interest fell 2.65% to roughly $54.5B, and funding stayed pinned near the 0.01% baseline the whole way up (via @coinglass_com). That combination — price up, OI down, funding flat — means this move is being driven by spot demand and short covering, not fresh leverage piling onto longs. Rallies that clear leverage on the way up tend to have less unwind risk than ones that stack it, since there's no crowded long base waiting to get flushed on the first red candle.
The next real test is $80K, with Fed Chair Kevin Warsh's Friday Jackson Hole speech as the likely catalyst either way.
Do you trust a spot-led rally more than a leverage-driven one, or does thin OI just mean the move runs out of fuel faster?
#TokenBot #Bitcoin #algotrading $BTC $TBOT
tokenbot.com
