Meanwhile, Bitcoin open interest, the total value of all unsettled leveraged futures contracts, actually rose during the cascade.

The contract count climbed from roughly 759,000 BTC to 788,600 BTC even as the long book was being wiped out, per CoinGlass data. Rising open interest into a falling price can indicate new short positions are opening rather than long positions closing, signaling that fresh bearish bets are building on top of the long flush rather than the cascade finding a clearing level.

The positioning split is uneven across trader types. Retail bitcoin traders on Binance, OKX and Bybit are still leaning long at ratios of 2.22, 2.01 and 1.58 respectively, refusing to capitulate even after the wipeout, while whale accounts on OKX have flipped to a 0.54 long-short ratio that CoinGlass flags as ‘extremely bearish.’

Aggregate taker volume across the period showed $65.39 billion in sells against $60.16 billion in buys, with sellers as the marginal actors.

OI rising into a falling price, retail still leaning long, and whale accounts flipping short on OKX all point to a market that has not found a clearing level. A break below $65,000 brings $60,000 into play; a hold opens the door to a relief bounce, but the positioning data argues against the bounce being the more likely outcome.

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Screen chart showing a descending line

BTC plunged 6.4% to a 24-hour low of $65,708 and ether broke below $1,900 in Asian trading on Wednesday, just hours after the MSCI All Country World Index set a fresh all-time high on the AI rally.

What to know:

  • Major cryptocurrencies tumbled even as global stock indexes hit fresh records, with bitcoin dropping as much as 12.3 percent on the week and ether down 11.1 percent.
  • The sell-off followed a string of bearish crypto developments, including MicroStrategy’s first disclosed bitcoin sale, heavy spot bitcoin ETF outflows exceeding $3.2 billion,…

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