K33: The Bitcoin derivation market is forming a "dangerous" pattern.

PANews November 19 news, according to The Block, the latest report from research institution K33 points out that the Bitcoin derivation market is showing a “dangerous” and structurally concerning trend, as traders are increasing aggressive leverage amid a deepening pullback. Data shows that the open interest of perpetual futures surged by over 36,000 BTC last week, marking the largest weekly increase since April 2023, while the funding rate continues to climb, indicating that traders are using high leverage to buy the dip. The company's research director Vetle Lunde stated that these leveraged long positions have become a potential source of selling pressure in the market, significantly increasing the risk of heightened volatility due to liquidation. Historical data shows that there have been seven similar market structures in the past five years, of which six continued to fall in the following month, with an average decline of -16%. The report also pointed out that Bitcoin is facing pressure from ongoing outflows of ETF funds, with a net outflow of approximately 20,150 BTC over the past week. This sell-off correlates with the selling by long-term holders and the relatively weak performance of tech stocks. If this round of pullback is comparable to the two most severe declines in the past two years, Bitcoin is expected to find support in the range of $84,000 - $86,000; if selling pressure intensifies, it may dip to the level of $74,433. Lunde stated: “These two price levels are psychological levels closely watched by many traders. Although there is a common misconception that strategy firms may be forced to sell when prices fall below their cost price, this price level itself represents a potential price that the market may chase.”