Bitfinex Alpha: BTC is nearing a local bottom and has the foundation to enter a stabilization phase.

According to a recent report from Bitfinex Alpha, Bitcoin saw a significant rebound last week, rising over 15% from its recent low to reach $93,116. However, selling pressure remains, with Bitcoin immediately falling 4.1% after the market opened this week. From a timing perspective, the market is approaching a local bottom, although whether the price has truly bottomed out remains to be seen. However, given the significant decrease in leverage, the sell-off by short-term holders, and signs of exhaustion in selling pressure, the market currently has the foundation to enter a stabilization phase. Furthermore, the continued contraction of open interest alongside the rise in spot prices suggests short covering rather than new speculative risk-taking, potentially laying the groundwork for a sustained recovery in the fourth quarter.