- Bitcoin fell to $112K, triggering aggressive selling, with Net Taker Volume falling to –$175 million in the last six hours.
- Despite partial stabilization, the Net Taker Volume remains negative, showing bearish sentiment with only a moderate reduction in selling pressure.
- Trader 0x0558 saw most of his $18M profit erased as long positions were liquidated, leaving him with 640 BTC longs worth $72.3 million.
Bitcoin futures markets experienced increased selling pressure after prices dropped to $112,000 on July 31, leading to aggressive bearish activity.
Net Taker Volume Shows Strong Bearish Pressure
Axel Adler Jr. reported a noticeable shift in futures market behavior as traders aggressively closed long positions beginning July 31. This shift intensified over the next 24 hours when the price hit a local low of $112K. During this period, the 6-hour Net Taker Volume dropped sharply to –$175 million, reflecting high bearish momentum.
Although there was partial stabilization later on, the Net Taker Volume only recovered to –$78 million. This decrease represented a 2.2x reduction in selling pressure, but the overall trend remained negative. The imbalance pointed to persistent caution among market participants.
Open Interest Rises as Bears Increase Exposure
Despite the temporary relief in net selling, futures market activity suggested an ongoing bearish outlook. Axel Adler Jr also noted that open interest rose over the past 24 hours, reaching the $3.04 billion range. This increase indicated that sellers continued accumulating positions, possibly anticipating further downside movements in price.
The combination of reduced Net Taker Volume and rising open interest confirmed a bearish sentiment prevailing in the market. Traders appeared to be positioning themselves for extended short exposure rather than anticipating an immediate reversal.
Major Long Position Liquidations Add to Downside Pressure
On-chain analysis shared by Lookonchain revealed the liquidation of large positions amid the market decline. A trader identified as 0x0558 experienced forced liquidation of portions of his Bitcoin and Ethereum long positions. He also completely exited his Ethereum longs.
The trader now holds 640 BTC long positions valued at $72.3 million. Five days earlier, he was up over $18 million in profits. Despite this, the abrupt fall in price has reduced his profit to $494,700. This drawdown highlights the volatility and risk levels that are currently realized for leveraged traders in the crypto markets.
Futures data shows shorts positioning and large trader liquidations, but the overall sentiment is cautious while Bitcoin maintains a level above the $112k mark.
