According to the market intelligence and on-chain data analytics platform Glassnode, the latest rebound of #Bitcoin was driven tactically, with an increase in leveraged futures positioning and hot capital, while broader macroeconomic flows remain muted. When price rises due to futures positioning and hot capital, the rally tends to be short-lived and highly vulnerable.
By relying on open interest in futures, small moves against the price can trigger forced liquidations of long positions, causing sharp declines. Without macroeconomic flows to absorb the available supply, price tends to run into strong ceilings in the average cost zone for short-term holders.
By relying on open interest in futures, small moves against the price can trigger forced liquidations of long positions, causing sharp declines. Without macroeconomic flows to absorb the available supply, price tends to run into strong ceilings in the average cost zone for short-term holders.
