$BTC leverage is finally cooling, but the market hasn't decided what comes next
Yesterday I flagged that Binance BTCUSDT perpetual open interest kept climbing while price fell. Today's daily snapshot shows the first real change: open interest dropped from about 99,500 BTC to roughly 96,600 BTC, close to a 3% reduction, while Bitcoin held near 73,500 dollars inside a fairly tight 24h range of about 73,400 to 74,800.
That combination matters. Leverage coming off without a fresh leg down suggests positions were closed rather than liquidated in a cascade. Funding is still slightly positive at around 0.008% per 8 hours, so longs haven't capitulated, but they are paying less to stay in.
The rest of the market is quieter than the headlines. BTC dominance sits near 60%, ETH/BTC is around 0.0278 and still leaking, and the Fear & Greed Index reads 28, its lowest in three days. $ETH trades near 2,040 dollars and SOL near 83, both roughly flat to slightly down. SOL perpetual funding has dipped just below zero, the first sign of shorts leaning on a large alt.
How I'm reading it: the excess leverage is getting trimmed in an orderly way, which is healthier than the setup a day ago, but it is not yet a washed-out base. I'd want to see funding go neutral or negative on BTC while price holds above 73,000, or a quick reclaim of 75,000 with open interest staying flat, before trusting a bounce.
Not financial advice. Do you see the open interest drop as the start of a reset, or just a pause before another leg?
Yesterday I flagged that Binance BTCUSDT perpetual open interest kept climbing while price fell. Today's daily snapshot shows the first real change: open interest dropped from about 99,500 BTC to roughly 96,600 BTC, close to a 3% reduction, while Bitcoin held near 73,500 dollars inside a fairly tight 24h range of about 73,400 to 74,800.
That combination matters. Leverage coming off without a fresh leg down suggests positions were closed rather than liquidated in a cascade. Funding is still slightly positive at around 0.008% per 8 hours, so longs haven't capitulated, but they are paying less to stay in.
The rest of the market is quieter than the headlines. BTC dominance sits near 60%, ETH/BTC is around 0.0278 and still leaking, and the Fear & Greed Index reads 28, its lowest in three days. $ETH trades near 2,040 dollars and SOL near 83, both roughly flat to slightly down. SOL perpetual funding has dipped just below zero, the first sign of shorts leaning on a large alt.
How I'm reading it: the excess leverage is getting trimmed in an orderly way, which is healthier than the setup a day ago, but it is not yet a washed-out base. I'd want to see funding go neutral or negative on BTC while price holds above 73,000, or a quick reclaim of 75,000 with open interest staying flat, before trusting a bounce.
Not financial advice. Do you see the open interest drop as the start of a reset, or just a pause before another leg?