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Analyst: Derivatives Market Shows Deleveraging Signals in Past 3 Months, Resetting Market Structure or Representing Phase Bottom Formation
Summary: According to CryptoQuant, a cryptocurrency data platform, the open interest in Bitcoin derivatives market has been decreasing over the past three months, gradually reducing leverage levels and creating conditions for a shift towards a bullish market structure. Since October last year, Bitcoin derivatives open interest (OI) has dropped by 31%, signaling deleveraging and helping to ...
According to CryptoQuant, a cryptocurrency data platform, the open interest in Bitcoin derivatives market has been decreasing over the past three months, gradually reducing leverage levels and creating conditions for a shift towards a bullish market structure.
Since October last year, Bitcoin derivatives open interest (OI) has dropped by 31%, signaling deleveraging and helping to eliminate excessive leverage in the market. The platform cited crypto analyst Darkfost's view that historical data shows this type of deleveraging phase often marks the formation of important bottoms, effectively resetting the market structure and building a stronger foundation for a potential bull market recovery.
The analyst believes that this pattern may be repeating currently, but also adds that if Bitcoin continues to decline and enters a bear market, open interest may further shrink, indicating a deeper deleveraging adjustment and continuation of corrective market trends.
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Link: Analyst: Derivatives Market Shows Deleveraging Signals in Past 3 Months, Resetting Market Structure or Representing Phase Bottom Formation [Copy]
