Bitcoin is trading at $111,000 on Tuesday, while holding on to the critical $110,000 support level.
The world’s largest cryptocurrency has struggled to recover from a weekend sell-off that saw it fall from $121,000 to $110,000, wiping out $500 billion in terms of overall crypto market capitalization.
Altcoins have performed even worse lately; plasma is down 58% in a week, while FET, OP and ETHFI lost more than 35% of their value respectively.
Derivatives positioning
- The BTC futures market appears to be stabilizing after its recent volatility. Open interest has stabilized at around $25.5 billion, showing no major changes from yesterday after the significant drop over the weekend. The 3-month annualized basis is now trading in a lower 5-6% range, a drop from its previous bounce and indicating a slight cooling of bullish sentiment. A key divergence in funding rates remains: Bybit’s rate turns negative at -5%, while Hyperliquid’s remains positive at 10%. This suggests a mixed and complex market sentiment, with strong but isolated long and short convictions on different platforms.
- The BTC options market is showing a significant bullish acceleration. The 24-hour put/buy volume is now roughly balanced at a 50-50 split, a change from being dominated by calls, while the 1-week Delta Skew of 25 has risen dramatically to 12.62%. This high positive bias indicates a substantial premium for calls over puts, demonstrating that traders are aggressively positioning themselves for bullish price action and are willing to pay a premium for bullish exposure.
- Coinglass data shows $627 million in 24-hour liquidations, with a 70-30 split between long and short positions. ETH ($185 million), BTC ($125 million), and Others ($69 million) were the leaders in terms of notional settlements. The Binance settlement heatmap indicates $110,600 as the central settlement level to monitor, in case of a price drop.
symbolic talk
By Oliver Knight
- Plasma XPL$0.4163 fell another 13.5% on Tuesday, extending its losses to 52% since its debut in late September.
- The stablecoin-focused Layer 1 blockchain faces skepticism over its tokenomics and large “ecosystem and growth” allocations.
- Circulating supply stands at 1.8 billion against a total of 10 billion, indicating years of potential selling pressure as acquired tokens are unlocked.
- The tokens were sold in the public round for $0.05 each, leaving ICO buyers comfortably profiting at current prices of around $0.41.
- Investors who bought after going public are facing huge losses amid weak market sentiment.
- Analysts expect continued downward pressure once investors’ first tokens become fully liquid; ICOdrops data shows that a major unlock will occur in the second quarter of 2026.
