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."
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