Bitcoin futures markets are showing a sharp increase in bearish positioning as traders unwind long positions and shorts pile in, according to CryptoQuant analyst Axel.
Since July 31, futures markets have seen an active closing of long positions and heavy selling pressure. When Bitcoin’s price dipped to a local low of $112,000, the 6-hour net taker volume plunged to -$175 million, highlighting aggressive short-side activity.
As prices partially stabilized, the indicator narrowed to - $78 million, but the broader market remains under bearish pressure.
Open interest surged to $3.04 billion in the past 24 hours, with short sellers continuing to build positions to profit from the prevailing downtrend, Axel said, adding that the market imbalance remains in favor of the bears.
