Bitcoin’s market is exhibiting signs of significantly reduced speculative activity, as indicated by key metrics like funding rates and sustained exchange outflows. The critical $118,000 liquidation level remains a focal point for potential price action.
Funding rates across perpetual swap markets have consistently fallen below 0.1%. This low level suggests traders are exhibiting less leverage and diminished enthusiasm for highly speculative long positions compared to earlier periods.
Concurrently, substantial Bitcoin withdrawals from exchanges continue, with a single day outflow recently amounting to $113.32 million. This persistent trend underscores a prevailing preference among holders to move Bitcoin into self-custody rather than actively trading it on exchange platforms.
Market analysts highlight the inherent significance of the $118,000 level. This zone represents a concentrated area of potential liquidity where leveraged positions face heightened risk of liquidation. The interaction between price and this liquidation cluster is widely viewed as a key determinant for Bitcoin’s near-term price trajectory and overall market stability.