Bitcoin volatility drops to 2016 low, leverage continues to exit to reduce liquidation risk

Crypto Quant analyst Axel Adler Jr stated that the 30 day average of Bitcoin's actual volatility in one week has dropped to 28.3, falling back to the historical 8th percentile since 2016. The 30 day momentum of Bitcoin open interest contracts (OI) relative to market value has been negative for 21 consecutive days, and market leverage has continued to decline. The current price has rebounded by about 11.4% from the June low, without the expansion of derivative positions, reducing the risk of large-scale liquidation waterfall. Bitcoin is currently below its 200 day moving average of $72666. If the subsequent volatility rises above 35 but the price cannot reach the long-term moving average, it increases the downside risk.