Bitcoin is trading at $111,000 on Tuesday as it clings to the critical support level of $110,000.
The world’s largest cryptocurrency has struggled to recover from a weekend selloff that saw it fall from $121,000 to $110,000, wiping out $500 billion in terms of the crypto’s overall market capitalization.
Altcoins have performed even worse recently; plasma is down 58% in a week while FET, OP and ETHFI have all lost over 35% of their value respectively.
Positioning of derivative products
- The BTC futures market appears to be stabilizing following its recent volatility. Open positions stabilized around $25.5 billion, showing no major changes from yesterday after the weekend’s significant drop. The 3-month annualized basis is now trading in a 5-6% lower range, down from the previous rebound and indicating a slight cooling of bullish sentiment. A key divergence remains in funding rates, with Bybit’s rate turning negative at -5%, while Hyperliquid’s rate remains positive at 10%. This suggests mixed and complex market sentiment, with strong but isolated long and short convictions across different platforms.
- The BTC options market is showing significant bullish acceleration. The 24-hour Put/Call volume is now roughly balanced at a 50-50 split, meaning it was no longer dominated by calls, while the 1-week 25 Delta Skew has climbed dramatically to 12.62%. This strong positive skew indicates a substantial premium for calls over puts, showing that traders are aggressively positioning for higher prices and are willing to pay a premium for bullish exposure.
- Data from Coinglass shows $627 million in liquidations over 24 hours, with a 70-30 split between long and short positions. ETH ($185 million), BTC ($125 million), and Others ($69 million) were the leaders in terms of notional liquidations. The Binance liquidation heatmap shows $110,600 as the base liquidation level to watch, in case of a price decline.
Symbolic discussion
By Olivier Knight
- Plasma XPL$0.4163 fell another 13.5% on Tuesday, extending its losses to 52% since its late September debut.
- The stablecoin-focused Layer 1 blockchain faces skepticism over its tokenomics and large “ecosystem and growth” allocations.
- The circulating supply stands at 1.8 billion compared to the total of 10 billion, pointing to years of potential selling pressure as acquired tokens are unlocked.
- The tokens were sold in the public round at $0.05 each, leaving ICO buyers comfortably in profit at current prices of around $0.41.
- Investors who bought after the listing are facing heavy losses amid weak market sentiment.
- Analysts expect continued downward pressure once early investors’ tokens become fully liquid, ICOdrops data shows a major unlock will occur in the second quarter of 2026.
