Bitfinex Report: Bitcoin Sell-off is Gradually Transitioning to a Phase of Market Absorption
Bitfinex released a report stating that despite the fierce BTC sell-off momentum, the $60,000 to $62,000 range remains intact, indicating that forced selling is gradually transitioning to a phase where it is being absorbed by the market, rather than a new round of capitulation selling.The situation with derivative positions confirms that leverage has been fully reset. The open interest in futures has decreased by more than 50% from the peak in October, and after the escalation of the situation in Iran, the funding rate briefly turned significantly negative, indicating that market sentiment has bottomed out, with a large proportion of short positions. Historically, if spot demand follows, such extreme situations will create conditions for a rebound short squeeze.However, the options market presents a more complex picture: recent options skew remains defensive, with strong demand for downside protection, while the quarterly positions in late March show a clear bullish tendency, concentrated in the $80,000 to $90,000 range.