Weekend crypto rally was temporary rebound, not trend reversal: Analyst

The recent rebound in Bitcoin is more of a deleveraging rally than a trend reversal driven by new leveraged funds, according to on-chain analyst Axel Adler Jr. He argued that a true trend reversal requires a simultaneous increase in both price and Open Interest (OI). However, while Bitcoin's price rose over the weekend, BTC futures OI decreased by about 6%, from $1.65 billion to $1.55 billion. Additionally, the funding rate remained positive, ranging from +0.001% to +0.020% over the past 24 hours. Adler Jr. explained that this combination of rising prices, falling OI, and a positive funding rate is a common pattern during deleveraging, indicating that existing positions are being closed but new leveraged long positions have yet to enter the market in earnest.