Major cryptocurrencies are undergoing a price pullback, characterized as a long squeeze rather than a bearish sentiment. Bitcoin fell below 120,000 USD, leading the CoinDesk 20 Index to drop 6.8% in 24 hours.
Open interest has dropped over 6% for XRP in two days, and SOL, BTC, and ETH also experienced declines. This indicates market participants are reducing exposure and adopting less risky positions.
Despite the falling prices, the funding rates for these cryptocurrencies remain positive, reflecting a bullish bias in the market. This suggests that excessive long positions are being cleared, contributing to a healthier trading environment.
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