Analyst: The BTC futures market has entered a healthy deleveraging phase after experiencing a peak in liquidations, and the shrinking open interest signals positivity.

Mars Finance reports that cryptocurrency market analyst Axel posted on social media that approximately $526 million worth of Bitcoin futures contracts were liquidated in a single day, with open interest (OI) reaching a high of 319,499 BTC but not rebuilding leverage, instead falling back to 293,045 BTC. The liquidation dominance indicator has shifted from a sustained two-week negative to positive, indicating the end of the systemic short squeeze phase. Currently, prices remain stable in the 75,000-76,000 range while OI contracts, forming a constructive “cooling after a short squeeze” structure rather than a new overheating phase. The next focus is whether OI will return above 300k BTC if the price attempts to break through.