According to Matrixport’s latest analysis, Bitcoin is attempting a recovery for a trend reversal after a wave of intense selling described as “capacitation.”
The analysis stated that vulnerable positions were liquidated during the recent downturn, triggering a chain reaction that involved both passive selling pressure in the spot market and forced liquidations in derivatives markets.
According to the analysis, there is still room for upward movement from a technical perspective in the short term. However, whether this rise will continue does not depend solely on the closing of short positions or transactions made by institutions through hedge funds. The key determining factor, it is emphasized, is whether or not there will be new capital inflow into the market.
Matrixport states that Bitcoin is still in a broad bear market “recalibration” phase. While sharp rebound rallies are common during such periods, these movements are generally difficult to sustain.
On-chain data also shows that market conditions remain fragile. Demand momentum is weak, structural accumulation remains limited, and increased hedging activity in the options market is driving up volatility.
The report also noted that if support levels in the spot market weaken, the price could fall rapidly, and in this process, the influence of derivative markets on Bitcoin price formation would increase even further.
*This is not investment advice.
