Bitcoin pushed higher on heavy spot buying as derivatives traders faded the move and funding turned negative. At the same time, a separate Binance signal showed open interest dropping 31%, adding evidence that leverage is clearing out while price holds firm.
Spot Buyers Drive Bitcoin Higher as Derivatives Fade the Move
Bitcoin extended its latest rally as spot market demand took the lead, while derivatives traders positioned against the move. The setup shows a clear split between buyers using real capital and leveraged traders expressing caution, based on market data and on-chain metrics.
Price climbed steadily on the 15-minute BTC/USDT chart, pushing toward the $94,300 area. During this advance, aggregated spot volume jumped to its highest level in several days. That rise in spot activity signals direct buying rather than leverage-driven positioning. At the same time, candles show limited upper wicks, which suggests buyers absorbed supply without sharp rejection.
Bitcoin/USDT 15 Minute Chart. Source: TradingView/X
Meanwhile, derivatives data moved in the opposite direction. Aggregated open interest increased, indicating more futures positions entered the market as price rose. However, funding rates turned negative, meaning short positions paid longs. This combination points to traders fading the rally through perpetual contracts instead of chasing it. In simple terms, leverage leaned bearish even as price moved higher.
This divergence matters. When spot volume expands while funding drops below zero, it often reflects real demand meeting skeptical leverage. Spot buyers commit capital without forced liquidation risk, while perpetual traders can unwind quickly if price keeps rising. As a result, sustained spot-led rallies can pressure short positions over time, especially if price continues higher.
The structure also shows that open interest rose alongside price rather than collapsing. That detail suggests the move did not come from short covering alone. Instead, new positions entered both sides of the market. However, the funding signal shows that many of those positions leaned short, reinforcing the idea that derivatives traders resisted the upside.
Overall, the data frames this rally as structurally supported by spot flows, not leverage. As long as spot demand remains elevated and funding stays negative, the market reflects a tension where real buyers lead and derivatives traders hesitate.
Bitcoin Deleveraging Pushes Open Interest Lower
Meanwhile, Bitcoin’s derivatives market moved into deleveraging as open interest on Binance fell by about 31%, based on CryptoQuant data. The drop reflects traders closing leveraged positions while price avoided a sharp breakdown.
Binance Bitcoin Deleveraging Signal Chart. Source: CryptoQuant
The chart highlights several red-shaded periods where open interest declined while Bitcoin price stabilized or later advanced. In the latest phase, open interest moved closer to its 180-day average as price stayed near recent highs around $90,800. That alignment shows leverage leaving the system without heavy downside follow-through.
Lower open interest reduces liquidation risk because fewer leveraged positions remain exposed to volatility. As leverage contracts, price action tends to depend more on spot flows than on derivatives positioning.
CryptoQuant analyst Darkfost noted that similar declines in open interest have often appeared near major market lows in past cycles. Those phases followed periods of elevated leverage and were later followed by stronger price trends.
At present, Bitcoin trades with open interest well below recent peaks. The data points to a cooling derivatives market while price remains supported, framing the move as a consolidation phase rather than a structural breakdown.
Source: https://coinpaper.com/13739/bitcoin-rally-splits-the-market-as-spot-buys-surge-and-leverage-exits
