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CryptoQuant: Market deleveraging approaching a critical point, analysts see it as a buy signal

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Deep潮 TechFlow News, November 11th, according to CryptoQuant analyst GugaOnChain report, the cryptocurrency market’s open interest (OI) for contracts not closed within 7 days has decreased by 11.32%, approaching the critical 12% threshold, which is seen as a strong buy signal. This deleveraging indicates that the market is clearing excessive speculative leverage. Historically, such events are considered necessary for market “reset” and health. Bitcoin has experienced an 8% to 19% decline in open interest, with extreme cases seeing the total amount of open contracts decrease by over $10 billion. Although current market sentiment may still be in “extreme fear,” major financial institutions like JPMorgan believe that after large-scale leverage clearing, Bitcoin has “significant upside potential.” Analysts believe the market is currently building a more stable foundation, creating favorable conditions for long-term investors.

BTC-2.32%
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