Since July 31, the cryptocurrency futures market has experienced significant changes related to the closure of long positions and a sharp price drop.
Closing Long Positions and Volume Drop
Since the beginning of the last month, traders have been actively closing long positions, coinciding with a sharp price drop to a local low of $112,000. As a result, Net Taker Volume fell to -$175 million over a 6-hour period, marking one of the most extreme drops in recent trading sessions.
Increase in Open Positions Amid Selling
Despite the sell-off, open interest in futures contracts increased to $3.04 billion. This rise indicates that traders continue to bet on further price declines, even as some easing in selling volumes is observed.
Overall Market Outlook
Overall, the market remains under pressure from sellers, while buyers seem hesitant in their actions. Although a short-term stabilization is noted, the prevailing sentiment in the market continues to be bearish.
The current conditions in the crypto futures market reflect a cautious bearish sentiment, prompting careful consideration among traders.
