Exchange Alpha: BTC is approaching a local bottom and has the foundation to enter a stabilization phase

ChainCatcher reported that, according to the latest report from exchange Alpha, bitcoin experienced a significant rebound last week, surging more than 15% from its recent low to reach $93,116. However, selling pressure still remains, as bitcoin dropped 4.1% immediately after the market opened this week. From a timing perspective, the market is approaching a local bottom, although whether the price has truly bottomed out remains to be seen.

Nevertheless, given the sharp decline in leverage, the wave of short-term holders selling, and signs of exhausted selling pressure, the market now has the foundation to enter a stabilization phase. In addition, while spot prices are rising, open interest continues to shrink, indicating short covering rather than new speculative risk-taking, which could lay the groundwork for a sustained recovery in the fourth quarter.