The Bitcoin futures market continues to exhibit moderate bearish sentiment while the cryptocurrency's price stabilizes near historical highs.
Current Status of the Futures Market
As of June 18, the futures market power for Bitcoin stands at –93K, indicating a shift toward bearish positions without suggesting aggressive selling.
Historical Context of Bearish Spikes
Historical data show that bearish spikes in futures markets usually led to short-term price corrections. For instance, local declines in futures market power of -50K to -150K were registered in January, July, and April 2024, correlating with price drops of 5-10 percent.
Impact of Liquidations on Bitcoin's Growth
Liquidation and short-selling cycles have not significantly affected Bitcoin's long-term growth patterns over the last two and a half years. Instead, these events are volatility incidents within an ongoing bullish structure.
Despite the volatility and bearish pressure in the futures market, Bitcoin's price continues to show an overall upward trend.
