Bitcoin’s pressure index in derivative markets fell to the high bearish level, according to CryptoQuant data. This chart was accompanied by an aggressive sales volume of $1.8 billion in just one hour. It was observed that panic sales gained momentum as the end of February approached, especially in this period when the increasing political tensions between the USA and Iran caused price fluctuations.
Latest Situation in Derivative Market Index
Bitcoin Derivatives Market Pressure Index monitored by CryptoQuant; It shows the directional intensity in both price and derivative positions together. Data between January 30 and February 28 reveal that there has been a permanent weakening in the index and that the critical threshold has been reached as of this morning. While the index has been above the neutral line since the end of January, it started to decline rapidly along with the price at the beginning of February. Although there was a short-term recovery between February 11-13, this recovery was not permanent. From mid-month onwards, the print index moved steadily downwards as the price fluctuated. On February 28, both the price and pressure index reached the high bear pressure zone at the bottom of the chart. This level is seen for the first time since previous price declines, and the fact that both the price and the index test the bottoms at the same time increases the importance of the current chart.
Impact of $1.8 Billion Sales
Derivative data announced earlier in the day also clarifies the reason for the deterioration in the index. As the allegations of US attacks against Iran spread to global markets, aggressive sales of $ 1.8 billion took place in a single hour. This amount is not considered an ordinary transaction volume. This sell-off of just one hour occurs as large-scale investment management systems simultaneously reduce risk. In other words, this selling wave in the market points to serious risk reduction by corporate and automated systems rather than individual transactions of small investors. The short histogram bars on the far right of the CryptoQuant chart also provide a visual representation of this movement, indicating rapidly rising selling pressure following an unusual, specific geopolitical development.
Bearish Sentiment and Market Floors
The high bear pressure line on the chart stands out as an indicator of upward historical pessimism in derivative markets. When the index approached this level in February, either the price bottomed out or the current decline accelerated. For example, on February 5-6, while the price dropped to approximately $60,000, the index hit a bottom and then there was a rapid recovery. The price reached $70,000 and the pressure index reached 32 points, then the decline started again. How the current pressure will turn out depends on how new topics such as the Clarity Act process on March 1, as well as the geopolitical process, will affect it.
Bitcoin continues to trade at its lowest levels since the crash in early February. In bear regions with high derivative pressure index, aggressive sales of $1.8 billion were made at once in the morning hours. These three factors show that the markets were under serious stress in the last days of February and on a weekend full of macroeconomic uncertainties.
