Bitcoin rebounded yesterday at the key support level of $89,200, reaching $90,500. This support level is actually near the 50-day moving average and wasn't just randomly dropped. The problem is that the market has yet to break through the psychological barrier of $95,000, resulting in it getting stuck and oscillating back and forth. Wintermute's OTC head Jake Ostrovskis was quite straightforward—these two trading days were mainly impacted by ETF outflows, causing the market to enter a two-way oscillation.

What’s even more concerning is the leverage situation on the derivatives side. The open interest in BTC futures and options has now piled up to nearly 700,000 coins, hitting a three-week high. This means that since the beginning of the year, leverage positions have increased by 75,000 coins. The funding rate for perpetual futures has remained at a positive 0.09%, with longs continuously paying shorts to maintain their exposure—essentially, retail traders are using leverage to buy the dip, and this setup itself is a ticking time bomb. Once a reverse breakout occurs, a liquidation wave could come at any moment.