Recently, a chart from CryptoQuant clearly reflects the changes in sentiment in the Bitcoin futures market. The chart shows that starting from July 31, the market gradually entered a bearish-dominated phase. The large presence of purple bars indicates a significant increase in active selling power, with short-selling sentiment prevailing.
During this period, the BTC price fell from 118K to 115.4K, and Open Interest fell from 3.06B to below 3B. This means that not only is there selling pressure, but it is accompanied by capital outflows, indicating that most traders are choosing to step aside and observe, leading to a cooling market sentiment.
However, there were some signals in the trend: on the daytime of July 31, a strong green bar appeared, indicating that some capital attempted to enter the market for long positions. Although it was subsequently suppressed by bears, this shows that there is starting to be buying support below. Entering August, the purple selling pressure began to weaken, with Net Taker Volume recovering from -160M to -60M, and there were slight signs of price rebound.
At the same time, it can be seen that Open Interest has not quickly rebounded, indicating that both bulls and bears are relatively cautious, and the direction is still unclear. If active buying continues to strengthen while Open Interest starts to recover, it could be a signal that the market is attempting to turn.
Currently, the main pattern is still dominated by bearish pressure, and the market sentiment is weak. Short-term traders need to pay attention to the rhythm and strictly control risks; medium-term investors can wait for clearer directional confirmation, such as capital inflows or price breakthroughs in key ranges.
Has the bearish cycle completed? Or is it just a temporary calm? We can continue to observe the changes in active trading behavior and capital dynamics in the coming days.
$ETH $BTC $BNB
