Analyst: BTC selling pressure dominates, but overheated leverage is cooling

Selling pressure is dominating the Bitcoin market, with perpetual futures funding rates remaining in negative territory for an extended period, according to crypto analyst Gaah in a CryptoQuant contribution. He noted that sellers have been the primary market force since July of last year, while buyers have only managed to absorb the selling volume. Current selling pressure is at its highest level in three months. However, Gaah explained that the high-leverage situation, which persisted for 16 months, has been gradually easing since Bitcoin reached a new all-time high last October. Recent price declines have triggered forced liquidations and capitulation, leading to a lower leverage ratio, which he described as a positive signal for prices.