Bitcoin (BTC) rallied toward $64,000 on Monday, but futures market activity was lagging, which may be a sign that the rebound could lose momentum. Traders placed nearly $162 million in buy orders between $57,000 and $59,000, forming one of the largest visible liquidity clusters below the current pricing, potentially setting the stage for BTC’s next move.
Bitcoin rebound follows a leverage reset
Bitcoin’s recovery coincided with a decline in futures market activity. Futures data shows that the aggregated open interest fell to 255,000 BTC from 282,000 BTC during the selloff and even though Bitcoin has recovered from its drop to $59,000, the open interest remains well below last week’s peak.
BTC price, spot and futures CVD and funding rate. Source: Velo chart
The funding rate has also turned slightly positive at 0.0013 after briefly dipping below zero. The move shows futures traders are leaning long, but leverage remains relatively muted compared with levels seen before the decline.
Spot market activity is also a minor sign of stabilization. The aggregated spot cumulative volume delta (CVD), which tracks the balance between aggressive buyers and sellers, has improved by 11,000 BTC since last Friday. The shift points to a slowdown in aggressive selling after several weeks of persistent distribution.
Crypto trader Max Trades reached a similar conclusion, noting that open interest cooled noticeably during the bounce while funding flipped slightly positive. According to the analyst, the move appears to be driven in part by short positions being closed rather than aggressive new longs entering the market.
Likewise, Alphractal CEO Joao Wedson said Bitcoin has exited an “extreme leverage” phase and moved into moderate leverage territory following last week’s liquidations.
Wedson added that the market has not yet reached historical levels associated with extreme deleveraging, a zone that has often offered stronger accumulation opportunities.
Bitcoin: leverage pressure zone. Source: CryptoQuant
Related: Bitcoin price $60K support not yet safe as more macro headwinds stack up
BTC liquidity clusters below $60,000
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