CryptoQuant Reports Weak Bitcoin Futures Liquidity and Buyer Initiative

Bitcoin futures liquidity is weak with buyers showing reduced activity, per CryptoQuant’s data. Analyst Axel Adler Jr. highlights market fatigue and a drop in BTC futures open interest by 30%, indicating declining trader confidence.

These findings highlight potential market volatility as morale weakens, with historical precedents indicating possible rebounds following bearish trends.

CryptoQuant’s Analyst Axel Adler Jr. has highlighted that the Bitcoin Futures Liquidity Index suggests the market remains in a weak zone. Bulls showed unsuccessful attempts to regain control in October, marking fatigue. The Bitcoin price remains below the 30-day fair value, with liquidity and buyer strength considerably weakened.

“The Bitcoin Futures Liquidity Index indicates the market remains in a weak zone (<45). Bulls attempted to regain market control twice on October 13 and October 20, but both attempts failed. The current price is still below the 30-day fair value, futures liquidity is weak, and buyer initiative has significantly weakened, indicating that the market bulls are already tired.” – Axel Adler Jr., Analyst, CryptoQuant

The immediate impact is evident as BTC futures saw a dip in open interest by about 30%, echoing reduced trader confidence. Expert data from Glassnode confirms outflows from exchanges and waning buyer momentum indicate continued market caution.

While no major shift was noted in DeFi Total Value Locked (TVL), ongoing market caution implies a need for strategic evaluation. Historical analysis by CryptoQuant reveals similar patterns have preceded rebounds, hinting at potential reversals despite current sentiment.

Analyst insights suggest that weakened liquidity could fuel potential short squeezes, laying groundwork for abrupt shifts. Historical context implies prolonged bearishness can catalyze unexpected recovery phases, warranting attention to BTC and ETH market dynamics.