{"id":89850,"date":"2025-10-13T15:45:50","date_gmt":"2025-10-13T12:45:50","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=89850"},"modified":"2025-10-13T15:52:25","modified_gmt":"2025-10-13T12:52:25","slug":"analysts-spot-bullish-signals-in-bitcoins-recent-sell-off","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/analysts-spot-bullish-signals-in-bitcoins-recent-sell-off\/","title":{"rendered":"Analysts spot bullish signals in bitcoin\u2019s recent sell-off"},"content":{"rendered":"<p><a href=\"https:\/\/forklog.com\/en\/news\/bitcoin-slumps-to-about-111000\">The crypto\u2011market correction<\/a> triggered a sweeping purge of leveraged positions, creating conditions for a new leg higher in digital gold. Such a view was <a href=\"https:\/\/cryptoquant.com\/insights\/quicktake\/68eca0d04885f90809fc47a7-Bitcoins-Biggest-Reset-Pain-Today-gain-Tomorrow?utm_source=twitter&#038;utm_medium=sns&#038;utm_campaign=quicktake&#038;utm_content=egyhash\">shared<\/a> by CryptoQuant contributor EgyHash.\u00a0<\/p>\n<p>According to him, open interest in <a href=\"https:\/\/forklog.com\/en\/news\/what-are-bitcoin-futures\">bitcoin futures<\/a> plunged by $12bn \u2014 from $47bn to $35bn. He called it \u201cone of the most significant reductions in recent years.\u201d\u00a0<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/img-642cc6d11433db6a-6751954871583091-1024x576.png\" alt=\"image\" class=\"wp-image-267460\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/img-642cc6d11433db6a-6751954871583091-1024x576.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/img-642cc6d11433db6a-6751954871583091-300x169.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/img-642cc6d11433db6a-6751954871583091-768x432.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/img-642cc6d11433db6a-6751954871583091.png 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Source: CryptoQuant.\u00a0<\/figcaption><\/figure>\n<p>The estimated leverage ratio (ELR), which gauges traders\u2019 average leverage relative to exchange reserves, fell to its lowest since 2022.\u00a0<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/img-e1139ea3718a3588-6751970619112144-1024x576.png\" alt=\"image\" class=\"wp-image-267461\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/img-e1139ea3718a3588-6751970619112144-1024x576.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/img-e1139ea3718a3588-6751970619112144-300x169.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/img-e1139ea3718a3588-6751970619112144-768x432.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/img-e1139ea3718a3588-6751970619112144.png 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Source: CryptoQuant.\u00a0<\/figcaption><\/figure>\n<p>However, the ratio of <a href=\"https:\/\/forklog.com\/en\/news\/what-are-stablecoins\">stablecoins<\/a> to bitcoin (SSR) plays a particular role, EgyHash noted. The reading has matched April lows.\u00a0<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/img-d0a2554b85a1fecb-6751984129892422-1024x576.png\" alt=\"image\" class=\"wp-image-267462\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/img-d0a2554b85a1fecb-6751984129892422-1024x576.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/img-d0a2554b85a1fecb-6751984129892422-300x169.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/img-d0a2554b85a1fecb-6751984129892422-768x432.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/img-d0a2554b85a1fecb-6751984129892422.png 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Source: CryptoQuant.<\/figcaption><\/figure>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cThis trend indicates rising liquidity in \u2018stable coins\u2019 relative to the first cryptocurrency, which potentially points to an accumulation of purchasing power,\u201d the expert explained.\u00a0<\/em><\/p>\n<\/blockquote>\n<p>He stressed that historically such reductions in borrowed positions have preceded significant long-term uptrends.\u00a0<\/p>\n<p>EgyHash\u2019s conclusions are also supported by Glassnode\u2019s analysis. The firm noted that the sweeping liquidation erased \u201cexcess\u201d speculative bets, reducing the risk of similar crashes in future.\u00a0<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Friday\u2019s wipeout triggered the largest futures liquidation in Bitcoin\u2019s history. Over $11B in open interest was erased as leverage was forcefully unwound. A historic deleveraging event that has reset speculative excess across the market. <a href=\"https:\/\/t.co\/IzcEtGbCSE\">pic.twitter.com\/IzcEtGbCSE<\/a><\/p>\n<p>\u2014 glassnode (@glassnode) <a href=\"https:\/\/twitter.com\/glassnode\/status\/1977667161683530154?ref_src=twsrc%5Etfw\">October 13, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h2 class=\"wp-block-heading\">Another bullish factor\u00a0<\/h2>\n<p>According to Glassnode, funding rates across crypto derivatives have dropped to their lowest since the 2022 bear market.\u00a0<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Funding rates across the crypto market have plunged to their lowest levels since the depths of the 2022 bear market. <\/p>\n<p>This marks one of the most severe leverage resets in crypto history, a clear sign of how aggressively speculative excess has been flushed from the system. <a href=\"https:\/\/t.co\/XBufZmA9vs\">pic.twitter.com\/XBufZmA9vs<\/a><\/p>\n<p>\u2014 glassnode (@glassnode) <a href=\"https:\/\/twitter.com\/glassnode\/status\/1977405370621702365?ref_src=twsrc%5Etfw\">October 12, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Negative readings indicate a dominance of short positions, as traders expect further declines. Yet extremely low rates often set the stage for a bullish scenario \u2014 if prices begin to rise, a <a href=\"https:\/\/forklog.com\/en\/news\/what-is-a-short-squeeze\">short squeeze<\/a> may force short-sellers to close positions en masse.\u00a0<\/p>\n<p>At the time of writing, the long-to-short ratio stands at 46.58% versus 53.42%.\u00a0<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"275\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/img-93068f586e830760-6752024765180180-1024x275.png\" alt=\"image\" class=\"wp-image-267463\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/img-93068f586e830760-6752024765180180-1024x275.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/img-93068f586e830760-6752024765180180-300x80.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/img-93068f586e830760-6752024765180180-768x206.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/img-93068f586e830760-6752024765180180-1536x412.png 1536w, https:\/\/forklog.com\/wp-content\/uploads\/img-93068f586e830760-6752024765180180.png 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Source: <a href=\"https:\/\/www.coinglass.com\/LongShortRatio\">CoinGlass<\/a>.\u00a0<\/figcaption><\/figure>\n<p>Bitcoin\u2019s funding rate on Binance remains in negative territory, signalling investor caution. Ethereum\u2019s has turned positive.\u00a0<\/p>\n<p>At the time of writing, the first cryptocurrency trades around $114,500, up 2.1% over the past 24 hours. The leading altcoin has <a href=\"https:\/\/forklog.com\/en\/news\/bitcoin-price-recovers-above-115000\">recovered<\/a> to $4,100.\u00a0<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"681\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/img-703cbfcd8c02405d-6752037940291182-1024x681.png\" alt=\"image\" class=\"wp-image-267464\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/img-703cbfcd8c02405d-6752037940291182-1024x681.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/img-703cbfcd8c02405d-6752037940291182-300x200.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/img-703cbfcd8c02405d-6752037940291182-768x511.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/img-703cbfcd8c02405d-6752037940291182-1536x1022.png 1536w, https:\/\/forklog.com\/wp-content\/uploads\/img-703cbfcd8c02405d-6752037940291182.png 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Top-10 cryptocurrencies by market capitalisation. Source: <a href=\"https:\/\/www.coingecko.com\/\">CoinGecko<\/a>.\u00a0<\/figcaption><\/figure>\n<p>Earlier, crypto funds <a href=\"https:\/\/forklog.com\/en\/news\/crypto-funds-attract-3-17-billion-amid-market-correction\">saw inflows of<\/a> $3.17bn amid the market pullback. Since the start of the year, cumulative inflows have reached $48.67bn.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The crypto-market correction triggered a purge of leveraged bets, setting the stage for bitcoin\u2019s next advance.<\/p>\n","protected":false},"author":1,"featured_media":89851,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"Key gauges point to a renewed uptrend for the leading cryptocurrency","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[18,1205,46,1273,1138],"class_list":["post-89850","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitcoin","tag-cryptoquant","tag-ethereum","tag-glassnode","tag-opinions"],"aioseo_notices":[],"amp_enabled":true,"views":"260","promo_type":"1","layout_type":"1","short_excerpt":"Key gauges point to a renewed uptrend for the leading cryptocurrency","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/89850","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=89850"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/89850\/revisions"}],"predecessor-version":[{"id":89852,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/89850\/revisions\/89852"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/89851"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=89850"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=89850"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=89850"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}