Bitcoin derivatives structure explained: funding rates, open interest, and liquidation levels. How to read futures data to identify bullish or bearish setups.
The financial health index is at a critical threshold, demand-supply balance is weak, and nominal revenues have reached local lows.
Short-term holders have entered a stress regime, price has fallen below their average purchase price, and STH-SOPR (30D) has dropped to 0.98, indicating loss-taking and increased risk of accelerated selling.
Bitcoin registers a transition of market structure into risk-off mode: both indicators have shifted into bearish territory, requiring heightened caution until signs of reversal emerge.
Derivatives positioning remains negative while market sentiment has fallen to levels seen during major capitulations. Together, these signals point to an elevated-risk environment where persistent short-term selling pressure coincides with extreme investor fear.
The Bitcoin market is in a correction phase with a 30% drawdown from the all-time high. Two on-chain indicators: STH SOPR and P/L Block point to loss realization by participants and deteriorating market sentiment.
After the Federal Reserve's rate cut, the market is attempting to recover, but internal indicators show consolidation and a wait-and-see position among participants rather than confident expansion of impulse.
The market pulled back from the 125K highs to the current 90K zone with a current drawdown of -27%, while 67% of supply remains in profit.
Bitcoin showed a positive 200/20DMA slope for the first time in a month and approached the 52-Week High range amid expectations of a Fed rate cut.
The current correction of approximately -32% remains the mildest among Bitcoin's bear cycles: with approximately 88% of coins still in unrealized profit, and only about 12% of supply at a loss.
The Bull-index has risen to the 23% zone, while the fast-version has declined to 18% - the FAST < SLOW divergence signals potential problems for bulls.
Bitcoin corrected to the level of $92K after the strongest drawdown in this cycle equal to -32% from ATH.
