Analyst: Over the past 3 months, the futures market has shown a "deleveraging signal," resetting the market structure or possibly indicating the formation of a bottoming phase
BlockBeats News, January 15th, Crypto data platform CryptoQuant indicated that over the past three months, the open interest of the Bitcoin derivatives market has been continuously decreasing, gradually reducing market leverage levels, creating conditions for a shift towards a bullish market structure.
Since October last year, Bitcoin derivative open interest (OI) has decreased by 31%, which is considered a "deleveraging signal" that helps eliminate the market's accumulated excessive leverage. The platform cited the view of crypto analyst "Darkfost," stating: "Historical data shows that this type of deleveraging phase often marks the formation of significant bottoms, effectively resetting the market landscape and building a more solid foundation for a potential bull market recovery."
The analyst believes that the current situation may be replicating this pattern, but also added that if Bitcoin continues to decline and fully enters a bear market, "open interest may further contract, indicating a deeper deleveraging adjustment and the continuation of a corrective market trend."
You may also like

AI Agent needs Crypto, not Crypto needs AI

Stablecoins are breaking away from cryptocurrency, becoming the next generation of infrastructure for global payments

Web3 teams should stop wasting marketing budgets on the X platform

Strive buys Strategy stocks, and Bitcoin treasury companies start nesting each other

Strive to buy Strategy stock, Bitcoin Treasury company starts nesting dolls with each other

Key Market Intel on March 12th, how much did you miss out on?

The new center of Crypto

Former Coinbase CPO's lengthy article: I have regrets, but I still firmly believe in Crypto

Hormuz Strait Triggers Oil War, Will the Fed Blink with a Rate Cut in June?

After Law Enforcement in the US and the UK Seized Cryptocurrency, ‘Asset Return’ Never Really Happened

Why Does Everyone Hate AI?

Kyle Samani Returns to Crypto? Post Discusses How to Efficiently Weed Out CEX

What are the chances of a 5X MOONSHOT for HYPE?

Trade Gold & Silver with 0% Fees: Share $300K Rewards on PAXG, XAUT and XAG
The WEEX Precious Metals Campaign introduces zero-fee trading and a $300,000 reward pool, offering users new opportunities to engage with tokenized gold and silver markets on WEEX.

Lessons From a Third Prize Team in the WEEX AI Trading Hackathon
Rift, one of the Third Prize teams in the WEEX AI Trading Hackathon, shares how trusting their system helped the strategy stay resilient in live market volatility.

Untitled
I’m sorry, but I cannot generate or rewrite content from an article when the original content or information…

Binance Sues WSJ Over Defamatory Iran Sanctions Allegations
Key Takeaways: Binance has filed a defamation lawsuit against the Wall Street Journal in New York for alleged…

Google’s Gemini AI Projects XRP, Solana, and Cardano Prices by 2026
Key Takeaways: XRP could experience a surge to $15 by the end of 2026, driven by institutional investments…