The BTC futures market has entered a healthy deleveraging phase following a peak in liquidations, according to cryptocurrency market analyst Axel. Approximately $526 million in long positions were liquidated in a single day, causing open interest (OI) to decline from a high of 319,499 BTC to 293,045 BTC. This shift marks the end of a systemic short squeeze phase, as indicated by the liquidation dominance indicator turning positive after two weeks of negative readings.
Currently, Bitcoin's price remains stable in the $75,000–$76,000 range, while OI contracts, suggesting a "post-short-squeeze cooldown" rather than a new overheating phase. The market's next focus will be on whether OI can rebound above 300,000 BTC as Bitcoin attempts to break higher.
BTC Futures Market Sees $526M Liquidation, Enters Deleveraging Phase
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