Analyst: BTC consolidating after mass liquidations, not entering bear market

Bitcoin has entered a consolidation phase following large-scale leverage liquidations, according to an analysis from K33 Research reported by The Block. Analyst Vetle Lunde noted that the BTC futures premium on the CME has dropped to its lowest level since the U.S. regional banking crisis in 2023, reflecting cautious investor sentiment. Lunde explained that the current market structure is a typical consolidation period rather than the start of a bear market. He described this phase as a process of clearing out excess leverage before a major rally, characterized by rough volatility and stagnant trends. Lunde added that selling pressure from long-term investors is gradually easing, and the effects of the liquidations are subsiding. He suggested that once selling stabilizes, investor sentiment will likely improve, potentially shifting the market back to a bullish phase.