Bitcoin steadies in the $88,000 range…"Entering late stage of structural correction"

Bitcoin (BTC) is trading around the $88,000 level and has remained flat after weekend volatility, and analysts say it has entered the late phase of a correction.

On the 25th (local time), CoinDesk reported that on-chain analytics firm Glassnode "assessed that Bitcoin is entering the late-phase stage of a structural correction." It explained that an increase in supply from short-term holders and RSI-based momentum weakness are patterns that often appear in the 'end phase' of a correction.

Glassnode specifically diagnosed that the cumulative volume delta (Cumulative Volume Delta, CVD) of perpetual futures still maintains a negative (-) value, indicating recent selling pressure originated from aggressive selling in the futures market. However, it analyzed that the overall market situation appears to be a controlled decline centered on unwind (Unwind), not a large-scale panic liquidation, and that signs of gradual stabilization are appearing in the current range.

QCP Capital said, "Recent position flows show a clear shift in tone (reflecting a shift in tone); downside hedges are being maintained, but year-end call option open interest has become significantly larger than put options in the $85,000·$120,000·$140,000 ranges." It added, "Perpetual futures funding rates on major exchanges have turned negative and excessive long leverage has been removed, so volatility is high but the likelihood of further forced liquidations has decreased."

Experts expect that economic indicators and changes in rate expectations to be announced together with the resumption of the U.S. government will move the market going forward. Both QCP and Glassnode said, "If expectations for a December rate cut are maintained, Bitcoin has room to find stability in the current range," adding, "If positions normalize and the effects of previous leverage unwinds dissipate, a short-term bottom could form."