BTC Derivatives Positioning Still Bullish After Crash, Analyst Warns of Incomplete Deleveraging

Crypto analyst Axel Adler Jr. said on Jan. 30 that Bitcoin "long vs. short liquidations dominance" reached 97%, with the 30-day moving average at 31.4%, showing nearly all forced liquidations over the past month hit long positions. He noted such extreme readings can mark peaks in forced selling and short-term stabilization, but do not signal a lasting reversal without further confirmation, adding that a durable local bottom would require the oscillator to return to zero or the 30-day average to decline. Despite sharp price drops and cascading liquidations, BTC funding rates remain positive at an annualized 43.2% on Jan. 29, below the 100%+ highs in October–November but still reflecting dominant demand for long exposure, according to Adler. Positive funding during large-scale liquidations suggests the market may be quickly rebuilding long positions or has not fully flushed them out, implying deleveraging could be incomplete and that overall positioning in BTC derivatives still skews bullish, he added.