Bitfinex Report: Bitcoin Sell-off Transitioning to Market Absorption Phase

BlockBeats News, March 3rd: Bitfinex released a report stating that despite the intense selling pressure on BTC, the $60,000 to $62,000 range is still holding firm, indicating that the forced selling is gradually transitioning to a phase of market absorption rather than a new round of capitulation. The derivatives positioning confirms that leverage has been completely reset. The open interest of futures contracts has dropped by over 50% from its peak in October, and after the escalation of the Iran situation, the funding rate briefly turned significantly negative, indicating that market sentiment has bottomed out and that there is a relatively large short position. Based on historical experience, if spot demand follows, such extreme conditions will create conditions for a short squeeze rebound.

However, the options market presents a more complex picture: the recent skew in options still shows a defensive posture, with a strong demand for downside protection, while the quarterly positions for late March show a clear bullish bias, concentrated in the $80,000 to $90,000 range.