The Bitcoin market has undergone a sharp deleveraging, with over $19 billion in open contracts wiped out. This rapid reversal in leverage triggered widespread liquidations and a significant shift in investor positioning. Momentum indicators like RSI and spot CVD confirm the extent of the move, showing a drop in buying pressure and dominance of aggressive selling in the short term.
Despite the intensity of the event, the broader market structure remains intact. Spot trading volumes are still high, ETF inflows continue steadily, and on-chain metrics signal robust activity. This suggests that while leveraged participants were forced out, institutional demand and structural capital are still present, providing underlying support to the market.
In the options market, traders have repositioned around new volatility regimes, with increased demand for downside protection. On-chain metrics reflect a normalization, with profitability ratios cooling from euphoric levels but still indicating a market led by profitable holders. Overall, the market is entering a consolidation phase, marked by renewed caution, selective risk-taking, and a more measured rebuilding of confidence across spot and derivatives markets.
Despite the intensity of the event, the broader market structure remains intact. Spot trading volumes are still high, ETF inflows continue steadily, and on-chain metrics signal robust activity. This suggests that while leveraged participants were forced out, institutional demand and structural capital are still present, providing underlying support to the market.
In the options market, traders have repositioned around new volatility regimes, with increased demand for downside protection. On-chain metrics reflect a normalization, with profitability ratios cooling from euphoric levels but still indicating a market led by profitable holders. Overall, the market is entering a consolidation phase, marked by renewed caution, selective risk-taking, and a more measured rebuilding of confidence across spot and derivatives markets.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.