Bitcoin is currently under strong bearish pressure due to futures sell-offs and declining open interest, yet long-term cycle analysis indicates a bullish continuation ahead.
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Bitcoin futures net taker volume dropped to -$175M, signaling intense sell pressure in the short term.
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Analyst Merlijn highlights Bitcoin is midway through a historically bullish multi-year accumulation cycle.
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Negative funding rates and seller dominance point to extreme volatility but long-term momentum remains positive.
Bitcoin futures show bearish pressure, but long-term bullish cycles persist. Read COINOTAG for expert crypto insights and market updates.
Bitcoin Futures Market Shows Strong Bearish Sentiment Amid Sell-Offs
Bitcoin’s futures market experienced a sharp bearish shift as net taker volume plunged to -$175 million, reflecting aggressive selling. Open interest fell from over $3.06 billion to $2.98 billion, indicating traders are closing positions amid high volatility. This sell-off pushed prices down from the $117,000–$118,000 range to lows near $115,400, triggering widespread liquidations.
Funding Rates and Net Taker Volume Confirm Bearish Pressure
Funding rates for both longs and shorts have turned negative, a rare sign that short sellers are paying premiums to maintain positions. The 6-hour net taker volume remains deeply negative, confirming sellers dominate the market. These metrics highlight the intensity of the current bearish phase and the challenges bulls face in the short term.
Despite short-term volatility, these indicators are crucial for traders to understand market sentiment and adjust strategies accordingly.
How Does Bitcoin’s Long-Term Cycle Signal Bullish Continuation?
Bitcoin’s long-term cycle remains bullish despite recent sell-offs. Analyst Merlijn The Trader explains Bitcoin is in the second year of a typical three-year accumulation phase, historically followed by strong upward trends. This pattern suggests the recent bearish pressure is a temporary correction within a larger bullish framework.
Momentum Indicators Support Continued Uptrend
Key momentum indicators, including the Relative Strength Index (RSI), show no signs of overheating, indicating room for further price appreciation. Each major correction in Bitcoin’s history has preceded new all-time highs, reinforcing confidence in the ongoing accumulation cycle.
Source: Merijn The Trader
What Are the Key Metrics Highlighting Bitcoin’s Market Sentiment?
| Metric | Current Value | Comparison |
|---|---|---|
| Net Taker Volume | -$175M (peak sell-off) | Down from neutral levels |
| Open Interest | $2.98B | Decreased from $3.06B |
| Funding Rates | Negative for longs and shorts | Indicates bearish premiums |
Why Is Bitcoin Experiencing Extreme Volatility?
Bitcoin’s current volatility stems from a combination of aggressive futures sell-offs and negative funding rates. Sellers dominate the market, creating sharp price swings. However, this volatility is typical during accumulation phases, where market participants reposition for future growth.
Frequently Asked Questions
What causes Bitcoin futures to show bearish sentiment?
Bearish sentiment in Bitcoin futures is caused by high sell pressure, negative funding rates, and declining open interest, indicating traders are closing long positions and building shorts.
How does Bitcoin’s long-term cycle affect its price outlook?
Bitcoin’s long-term cycle typically includes accumulation phases followed by bullish trends, meaning current corrections may lead to future price increases based on historical patterns.
Key Takeaways
- Bearish short-term pressure: Bitcoin futures show strong sell-offs with declining open interest.
- Long-term bullish cycle: Historical patterns suggest Bitcoin is in a multi-year accumulation phase.
- Volatility signals opportunity: Negative funding rates and momentum indicators highlight market repositioning.
Conclusion
Bitcoin’s market currently faces intense short-term bearish pressure driven by futures sell-offs and negative funding rates. However, authoritative analysis confirms the long-term bullish cycle remains intact, signaling potential for continued upward momentum. Investors should monitor key metrics and historical trends to navigate this volatile phase effectively.
Bitcoin faces sharp bearish pressure with futures sell-offs and falling open interest, yet long-term cycle signals bullish continuation.
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Bitcoin futures show strong bearish sentiment with net taker volume hitting -$175M and open interest dropping to $2.98B amid high sell pressure.
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Despite short-term bearish trends, analyst Merlijn emphasizes Bitcoin is midway through a historically bullish multi-year accumulation cycle.
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Negative funding rates and deep seller dominance indicate extreme volatility, but long-term indicators suggest continued upward momentum.
Bitcoin’s short-term outlook has flipped bearish fast—sparking fresh fears—yet analysts still maintain confidence in its long-term structure.
Over the past 24 hours, Bitcoin’s futures market saw a massive bearish turn. Trading activity became aggressive as sellers dominated the charts. Prices fell from the stable $117,000–$118,000 zone to a low near $115,400.
This sudden drop triggered widespread liquidations and aggressive position closures. According to analyst Axel Adler Jr., net taker volume plunged to -$175 million during the downturn, signaling intense sell pressure.
Besides, open interest initially dropped from over $3.06 billion to $2.98 billion, revealing that many traders were exiting the market. While some stabilization followed, the bearish imbalance remained strong.
Source: Axel
Net taker volume, though reduced to -$78 million, still reflected a bearish mood. Consequently, traders continued to build short positions, hinting that many expect further downside.
Key Metrics Confirm the Bearish Shift
Axel highlights that the futures market is flashing red across several indicators. First, funding rates for both long and short positions have turned negative. This reveals a clear bearish tilt, with short sellers now paying premiums to stay in position. Also, the “High Bear Pressure” zone—highlighted on the sentiment chart—signals the worst conditions for bulls in the short term.
Moreover, the 6-hour Net Taker Volume turned extremely negative, proving that aggressive sellers are overwhelming buyers. These quick shifts show why relying only on price action misleads traders. Monitoring multiple indicators is essential in fast-moving markets like crypto.
Long-Term Structure Remains Bullish
However, Merlijn The Trader argues the long-term picture remains intact. He points out that Bitcoin is still in the middle of its bullish cycle. Historically, one red year is followed by three green years. According to him, Bitcoin is currently in the second year of a potential three-year uptrend.
Source: Merijn The Trader
Furthermore, momentum indicators, including the RSI, show no signs of overheating. The larger cycle pattern remains strong. Each major correction has led to new highs. Hence, despite short-term volatility, this is an accumulation window—not a panic zone.
