Bitcoin broke the key $59K support level and BTCUSDT perpetual futures longs liquidated approximately $120 million yesterday. While this is not a small amount, it is relatively small relative to the amount liquidated at the previous key $59K support level, and a "capitulation" is yet to be seen in the futures market.

Additionally, the Funding Rate indicator occasionally shows negative funding rates on an hourly basis, but the values ​​do not suggest dramatically shorting.

To form a bottom, we need to see massive liquidations in the futures market and a rapid shift to short positions. However, due to the relatively small size of long position liquidations and the lack of dramatic negative funding rates, we think a 'capture' in the futures market has not yet occurred and further declines are likely.

However, there is no need to be too negative about the market and the on-chain cycle metrics MVRV indicate an upturn in the cycle. As a result, a futures market capitulation signal would be a good signal to buy Bitcoin cheap.