Analysis: Bitcoin Long Position Liquidations Account for 96.7% and Funding Rate Remains Positive, Indicating Market Has Not Yet Completed Deleveraging

Odaily News: Crypto market analyst Axel Adler Jr. pointed out in an article that the Bitcoin futures liquidation dominance oscillator shows that long position liquidations accounted for 97% yesterday, with the 30-day moving average rising to 31.4%. This figure indicates that almost all forced liquidations in the market came from long positions, with buyers facing sustained systematic pressure over the past month. Despite the price drop and cascading liquidations, the Bitcoin perpetual contract funding rate remained positive, with an annualized rate of 43.2% yesterday. Although this indicator is lower than the peak of over 100% seen from October to November, it still suggests that market demand for going long remains dominant. The persistence of a positive funding rate amid large-scale liquidations increases the risk of further deleveraging, indicating that market long positions are recovering quickly or have not yet been fully unwound. The fact that the funding rate has not shifted into neutral or negative territory reflects that the derivatives market has not yet undergone a thorough liquidation. (axeladlerjr)