$BTC has made a significant move lower, but we still haven't seen a major flush in open interest.
We did witness the largest long liquidation event since June, when Bitcoin first dropped below $60K. Funding rates have also cooled considerably, even slipping slightly into negative territory.
With OI still relatively elevated, I expect volatility to remain high. Most of this correction has been a slow, steady grind downward, with selling pressure only accelerating over the last two days.
More than $1.6B in liquidations over the past 24 hours suggests a substantial number of leveraged longs have been wiped out. This also means a considerable portion of the remaining open interest could be directional shorts, many of which may have been opened at much higher prices and are unlikely to close until we see a meaningful bounce.
There are still leveraged longs in the market, but recent dip-buying activity appears relatively limited, which is a positive sign from a positioning perspective.
Overall, I believe there's still plenty of fuel for volatility. However, the key factor remains spot demand. Buyers need to step in and establish a genuine reversal. Without spot buying pressure, any potential recovery will struggle to gain momentum.
#WhatWillDriveCryptoandStocks’NextRebound? #BitcoinBreaksBelow200WeekMovingAverage
We did witness the largest long liquidation event since June, when Bitcoin first dropped below $60K. Funding rates have also cooled considerably, even slipping slightly into negative territory.
With OI still relatively elevated, I expect volatility to remain high. Most of this correction has been a slow, steady grind downward, with selling pressure only accelerating over the last two days.
More than $1.6B in liquidations over the past 24 hours suggests a substantial number of leveraged longs have been wiped out. This also means a considerable portion of the remaining open interest could be directional shorts, many of which may have been opened at much higher prices and are unlikely to close until we see a meaningful bounce.
There are still leveraged longs in the market, but recent dip-buying activity appears relatively limited, which is a positive sign from a positioning perspective.
Overall, I believe there's still plenty of fuel for volatility. However, the key factor remains spot demand. Buyers need to step in and establish a genuine reversal. Without spot buying pressure, any potential recovery will struggle to gain momentum.
#WhatWillDriveCryptoandStocks’NextRebound? #BitcoinBreaksBelow200WeekMovingAverage
