Cryptocurrency analytics firm MarktQuant has detected a significant shift in Bitcoin’s market structure following the recent liquidation event at $66,300.
According to the firm’s latest report, the clearing of these liquidations marks a significant turning point, with market dynamics highlighting a divergence between futures and spot trading behavior.
MarktQuant noted a decline in open interest, reflecting a decline in leveraged positions. This trend signals that traders may be taking profits or withdrawing speculative capital and therefore pulling back from riskier bets in the derivatives market. At the same time, spot trading behavior paints a contrasting picture.
Despite Bitcoin’s decline from $66,900 to $66,060 today, the Spot Cumulative Volume Delta (CVD) remains positive, suggesting that underlying demand is still strong. This persistent demand suggests that genuine buyers, potentially long-term holders, are absorbing the sell-side pressure and are stepping in to accumulate at current price levels.
However, the firm also reported that Futures CVD continued to decline, pointing to weak demand in the derivatives market and highlighting the disconnect between spot and futures flows. This dynamic sees leveraged investors unwind their positions while spot buyers support prices, leading to a more balanced market structure.
“The divergence between futures and spot markets points to the potential for a near-term consolidation phase,” MarktQuant said. “If spot demand remains resilient and open interest stabilizes, we could see a foundation being built for a future move higher, provided selling pressure in the futures market eases.”
*This is not investment advice.