Bitcoin Derivatives Momentum Weakening, But Market Remains Supportive

CryptoQuant analyst Axel Adler has observed that bullish momentum in the Bitcoin derivatives market is weakening. According to Adler, the Bitcoin Derivative Market Power indicator has decreased from 41% to 13%, indicating a decline in bullish sentiment.

Despite this decrease, the market has not yet fully turned bearish, with the Bitcoin price remaining around $63,900. The market's absorption capacity is also relatively strong, which Adler believes could support spot demand and stabilize prices.

Adler advises market participants to pay attention to changes in derivative capital flows, as a further decline in the indicator into negative territory would signal bearish forces dominating the market.