- Bitcoin futures show strong bearish sentiment with net taker volume hitting -$175M and open interest dropping to $2.98B amid high sell pressure.
- Despite short-term bearish trends, analyst Merlijn emphasizes Bitcoin is midway through a historically bullish multi-year accumulation cycle.
- Negative funding rates and deep seller dominance indicate extreme volatility, but long-term indicators suggest continued upward momentum.
Bitcoin’s short-term outlook has flipped bearish fast—sparking fresh fears—yet analysts still maintain confidence in its long-term structure.
Over the past 24 hours, Bitcoin’s futures market saw a massive bearish turn. Trading activity became aggressive as sellers dominated the charts. Prices fell from the stable $117,000–$118,000 zone to a low near $115,400.
This sudden drop triggered widespread liquidations and aggressive position closures. According to analyst Axel Adler Jr., net taker volume plunged to -$175 million during the downturn, signaling intense sell pressure.
Besides, open interest initially dropped from over $3.06 billion to $2.98 billion, revealing that many traders were exiting the market. While some stabilization followed, the bearish imbalance remained strong.
Source: Axel
Net taker volume, though reduced to -$78 million, still reflected a bearish mood. Consequently, traders continued to build short positions, hinting that many expect further downside.
Key Metrics Confirm the Bearish Shift
Axel highlights that the futures market is flashing red across several indicators. First, funding rates for both long and short positions have turned negative. This reveals a clear bearish tilt, with short sellers now paying premiums to stay in position. Also, the “High Bear Pressure” zone—highlighted on the sentiment chart—signals the worst conditions for bulls in the short term.
Moreover, the 6-hour Net Taker Volume turned extremely negative, proving that aggressive sellers are overwhelming buyers. These quick shifts show why relying only on price action misleads traders. Monitoring multiple indicators is essential in fast-moving markets like crypto.
Long-Term Structure Remains Bullish
However, Merlijn The Trader argues the long-term picture remains intact. He points out that Bitcoin is still in the middle of its bullish cycle. Historically, one red year is followed by three green years. According to him, Bitcoin is currently in the second year of a potential three-year uptrend.
Source: Merijn The Trader
Furthermore, momentum indicators, including the RSI, show no signs of overheating. The larger cycle pattern remains strong. Each major correction has led to new highs. Hence, despite short-term volatility, this is an accumulation window—not a panic zone.
