Bitfinex: BTC is approaching a local bottom and has the foundation to enter a stabilization phase

Bitfinex Alpha's latest report indicates that Bitcoin experienced a significant rebound last week, rising over 15% from recent lows to reach $93,116. However, selling pressure remains, as Bitcoin immediately dropped 4.1% after the market opened this week. From a timing perspective, the market is approaching a local bottom, although it remains to be seen whether prices have truly bottomed out.

However, given the substantial decrease in leverage, the selling off by short-term holders, and signs of exhausted selling pressure, the market currently has the foundation to enter a stabilization phase. Additionally, the rise in spot prices alongside the continuous contraction of open contracts suggests short covering rather than new speculative risk-taking, which could potentially establish a sustained recovery foundation in the fourth quarter.