BTC contract positions have experienced a noticeable pullback—OI has decreased by 31%, a figure worth pondering.

From historical trends, similar deleveraging phenomena often occur when the market hits bottom. When a large number of traders close positions and reduce leverage, and the long and short forces re-balance, the market is actually undergoing a deep cleansing. This process may seem risky, but it paves the way for a subsequent rebound.

In simple terms: when leverage recedes, it is often a phase where the market re-accumulates bullish momentum. The sharp decline in open interest clears unnecessary risk exposure, laying a more solid foundation for a genuine bullish trend. This bottom reset has repeatedly been a precursor to strong rebounds in history.