$BTC Longs are actively retreating!
This time, it’s not just the price pulling back from around $87,000.
BTC open interest is also continuing to decline!
The cumulative volume difference in the futures market continues to trend downward, with aggressive sell orders holding the upper hand.
Highly leveraged long positions are being squeezed out of the market, layer by layer!
From the chart, as BTC drops to around $82,800, open interest has fallen significantly from its prior peak to about 957,000 BTC, indicating that some contract positions have exited. At the same time, the cumulative volume difference continues to weaken, reflecting that in recent trading, the volume from aggressive selling remains stronger.
However, there’s a key distinction here: a decline in open interest alone only confirms that positions are being closed, but it cannot independently prove that all of it is long liquidation. Combined with the simultaneous price drop, the weakening cumulative volume difference, and the earlier decline in funding rates, it is more consistent with the characteristics of longs deleveraging. The upside is that the cleaner the leverage is cleared, the lower the market’s sensitivity to a chain-reaction liquidation later on.
Prices are falling, and leverage is retreating.
What BTC truly needs to watch now is whether, after the longs have fully cleared, spot will come back to take the order!
Click the card below and get started!👇
$ETH $ZEC
This time, it’s not just the price pulling back from around $87,000.
BTC open interest is also continuing to decline!
The cumulative volume difference in the futures market continues to trend downward, with aggressive sell orders holding the upper hand.
Highly leveraged long positions are being squeezed out of the market, layer by layer!
From the chart, as BTC drops to around $82,800, open interest has fallen significantly from its prior peak to about 957,000 BTC, indicating that some contract positions have exited. At the same time, the cumulative volume difference continues to weaken, reflecting that in recent trading, the volume from aggressive selling remains stronger.
However, there’s a key distinction here: a decline in open interest alone only confirms that positions are being closed, but it cannot independently prove that all of it is long liquidation. Combined with the simultaneous price drop, the weakening cumulative volume difference, and the earlier decline in funding rates, it is more consistent with the characteristics of longs deleveraging. The upside is that the cleaner the leverage is cleared, the lower the market’s sensitivity to a chain-reaction liquidation later on.
Prices are falling, and leverage is retreating.
What BTC truly needs to watch now is whether, after the longs have fully cleared, spot will come back to take the order!
Click the card below and get started!👇
$ETH $ZEC
