During the October–December correction, the derivatives market shed excess leverage. The ensuing restrained restoration of positions points to a prevailing conservative mood among traders, according to Glassnode analysts.
The #Bitcoin market hovers precariously below $50k, as the bulls, and bears draw their lines in the sand.
After a significant deleveraging in derivatives markets, onchain data provides insight into the most likely $BTC move.
Read more in The Week Onchainhttps://t.co/1hRY4Swkoz
— glassnode (@glassnode) December 13, 2021
Open interest (OI) in Bitcoin futures declined by 12.9% from peak levels (more than 50,000 BTC). Previously it had breached the 380,000 BTC threshold, a signal of subsequent liquidations.
\n\n\n\n
Over the past week, OI rose by ‘only’ 5,000 BTC. A quicker acceleration of the trend would point to a higher likelihood of stop-loss orders around the established trading range.
\n\n\n\n
\n\n\n\n
Суточный объем торгов биткоин-фьючерсами на пике превысил 2 млн BTC, что сопоставимо с резким сокращением ОИ в мае и сентябре.
\n\n\n\n
\n\n\n\n
In the perpetual futures market, funding rates moved into negative territory for the first time since October, coinciding with the current trough in the ongoing correction.
\n\n\n\n
Analysts see this as further confirmation of long-position liquidations. The lack of an active recovery in the indicator also signals cautious sentiment among crypto traders.
\n\n\n\n
\n\n\n\n
As Glassnode analysts reported, a resumption of Bitcoin withdrawals from exchanges to wallets.
\n\n\n\n
Subscribe to the ForkLog channel on YouTube!
\n”