Analysis: Bitcoin long positions were liquidated at a rate of 96.7%, and funding rates remained positive, indicating that the market has not yet completed deleveraging.

Crypto market analyst Axel Adler Jr. writes that the Bitcoin futures liquidation dominance oscillator shows that long positions accounted for 97% of liquidations yesterday, with the 30-day moving average rising to 31.4%. This figure means that almost all forced liquidations in the market came from long positions, indicating that buyers have faced continuous systemic pressure over the past month. Despite the price decline and the chain of liquidations, the funding rate for Bitcoin perpetual contracts remained positive, with an annualized rate of 43.2% yesterday. While this indicator is lower than the peak of over 100% during October and November, it still suggests that demand for long positions dominates the market. The positive funding rate during a large-scale liquidation increases the risk of further deleveraging, indicating that long positions in the market have either recovered rapidly or have not yet been fully liquidated. The fact that the funding rate has not yet moved into neutral or negative territory reflects that the derivatives market has not yet completed a thorough liquidation. (axeladlerjr)