Bitcoin Derivative Pressure Score Hits 30%: Downside Risk Signal

Bitcoin is at a crossroads after failing to reclaim higher supply levels, raising concerns among investors about the strength of its current ￰0￱ price has slipped below key demand zones, and bullish momentum is showing signs of ￰1￱ now, traders are watching closely as the market decides whether BTC can recover or if a deeper correction is ￰2￱ mood across the market has shifted, with many analysts warning that Bitcoin could soon test the $100K ￰3￱ a move would mark one of the most significant corrections of this cycle, sparking fear among short-term participants while possibly presenting opportunities for longer-term ￰4￱ analyst Axel Adler has shed light on the situation, pointing to data that highlights persistent derivative ￰5￱ to him, Bitcoin’s baseline trend suggests pullbacks are being driven by long ￰6￱ derivative markets heavily influencing price action, this pressure score — currently sitting in an elevated zone — keeps the market vulnerable to downside ￰7￱ Open Interest Signals Risks Ahead According to top analyst Axel Adler, Bitcoin’s current weakness is strongly tied to derivative market ￰8￱ highlights that the Bitcoin Open Interest Pressure Score sits at 30%, placing it firmly in the upper band.

Historically, this level reflects elevated risk conditions, where the market becomes vulnerable to sudden downside ￰9￱ such environments, leveraged longs face pressure, and any sharp decline in spot prices tends to trigger waves of liquidations that amplify ￰10￱ points out that the presence of orange cluster markers on the price chart reinforces this ￰11￱ clusters typically favor continued sideways or lower movement as the market undergoes a process of long de-leveraging. Essentially, traders who overextended during Bitcoin’s surge above $120K are now being forced out of positions, which weighs on momentum and creates a ceiling on recovery ￰12￱ further pressure is the recent capital rotation trend dominating crypto ￰13￱ and whales have been observed selling portions of their BTC holdings to accumulate Ethereum, a strategy supported by growing ETH adoption and whale ￰14￱ shift of liquidity has likely contributed to Bitcoin’s struggle to hold above the $110K level, weakening bullish ￰15￱ Bitcoin fails to reclaim lost ground and derivative pressure remains elevated, a test of the $100K zone becomes increasingly probable.

Conversely, stabilization and absorption of selling could reset leverage and prepare BTC for its next major ￰16￱ way, market participants should brace for heightened ￰17￱ Action Details: Testing Pivotal Level Bitcoin (BTC) is showing signs of stabilization after intense volatility in recent ￰18￱ chart highlights BTC trading at $110,488, attempting to reclaim ground after dipping below the $110K ￰19￱ level has now become a pivotal battleground between bulls and bears, with the next moves likely determining short-term ￰20￱ 50-day moving average sits above current price action, near $115,755, reinforcing the overhead resistance ￰21￱ must regain this level to confirm strength and attempt a retest of the $123,217 resistance, which remains the major hurdle for continuation toward new ￰22￱ the downside, the 200-day moving average, currently around $101,388, acts as a critical safety net.

A decisive breakdown below that point could accelerate a deeper correction, with the $100K level serving as psychological ￰23￱ structure suggests the market is in a consolidation phase, digesting the steep rally earlier in the ￰24￱ bulls manage to hold above $110K and build momentum, a move toward $115K and eventually $123K could follow. However, failure here may reopen the door for tests of lower demand zones closer to $105K–$101K. Featured image from Dall-E, chart from TradingView