K33: This Bitcoin bear market is different, as extremely pessimistic traders have limited the downside potential.
ChainCatcher reports, according to CoinDesk, that K33 Research stated in a report that this Bitcoin bear market is different; exceptionally pessimistic traders have limited the downside. Bitcoin traders remain in a defensive posture, which has reduced the risk of a leverage-driven crash. Research Director Vetle Lunde pointed out that the current slow grind at the bottom has not repeated the swift reversal trend seen in previous cycles after bear market rebounds; instead, derivatives data signals extreme pessimism. Bitcoin's 30-day average funding rate has been negative for 81 consecutive days, close to the longest record in history. CME Bitcoin futures annualized basis has declined to below 2.5%, which is considered extremely cautious. However, Bitcoin derivatives open interest remains high, and if the price weakens further, this could trigger volatility. K33 maintains its core view that Bitcoin dropping to $60,000 in February might represent the largest drawdown of this cycle.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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