The price was just pushed up from $835,000 to above $865,000, and the derivatives order book of $BTC quickly started to heat up. In just two days, the open interest increased by about 27,000 Bitcoin, bringing the total back to around 653,000. With the position size rebounding, the annualized funding rate on perpetual contracts jumped directly from 3% to 10%, instantly igniting the sentiment of borrowing money on the exchange to chase longs.
These derivatives readings showing both rising volume and price clearly depict leveraged capital rapidly refilling the order book. Softer-than-expected Non-Farm payroll data cooled U.S. Treasury yields, providing a breeding ground for momentum longs. But with funding at 10%, long positions are burning real money every moment; the original slack tolerance space is being compressed rapidly, forming a typical micro-crowded long structure.
At present, the focus of the battle has shifted from emotional venting to liquidity absorption. Near the resistance zone around $870,000, any premium pushed up purely by derivatives tends to be relatively fragile. If spot bids cannot promptly follow through to provide support, then once the market shows a slight pullback, stop-loss orders on the long positions piled up at the highs will turn into liquidity fuel to sell down, triggering a chain reaction of deleveraging.
While reclaiming the initiative can certainly boost morale, the cornerstone that ultimately determines how sustainable the trend is always lies on the spot side. Next, it comes down to whether spot buying around the $860,000 area can steadily catch and absorb this batch of aggressively leveraged longs with high costs.
These derivatives readings showing both rising volume and price clearly depict leveraged capital rapidly refilling the order book. Softer-than-expected Non-Farm payroll data cooled U.S. Treasury yields, providing a breeding ground for momentum longs. But with funding at 10%, long positions are burning real money every moment; the original slack tolerance space is being compressed rapidly, forming a typical micro-crowded long structure.
At present, the focus of the battle has shifted from emotional venting to liquidity absorption. Near the resistance zone around $870,000, any premium pushed up purely by derivatives tends to be relatively fragile. If spot bids cannot promptly follow through to provide support, then once the market shows a slight pullback, stop-loss orders on the long positions piled up at the highs will turn into liquidity fuel to sell down, triggering a chain reaction of deleveraging.
While reclaiming the initiative can certainly boost morale, the cornerstone that ultimately determines how sustainable the trend is always lies on the spot side. Next, it comes down to whether spot buying around the $860,000 area can steadily catch and absorb this batch of aggressively leveraged longs with high costs.