This Bitcoin rally has a very healthy signal that most people completely overlooked. BTC is rising, but leverage is actually disappearing. Glassnode data shows: From the August low until now, BTC price has increased by about 35%. But BTC-denominated open interest (OI) has instead: Dropped nearly 20%, even hitting its lowest level since March. This structure is super important. Normally, if a rally is mainly driven by leveraged long positions chasing the price, we usually see: Price ↑ + OI ↑ + Leverage ↑ The higher the rally, the more liquidation bombs are buried underneath. Once the price pulls back, it’s easy to see: Long liquidations → Price ↓ → More long liquidations → Waterfall-style crash. But what we’re seeing now is the complete opposite: BTC ↑ OI ↓ Leverage ↓ Price keeps climbing, but the futures market is continuously deleveraging. This means that this rally is at least not the typical high-leverage long-driven scenario, and the market’s vulnerability to large-scale long liquidations might be reduced. Honestly, I prefer this kind of rally. Because a truly healthy market isn’t about everyone piling in with 20x or 50x leverage to chase longs. It’s about: Price going up, while leverage gets flushed out. What’s really worth watching next is— If BTC continues to rise and OI starts to rapidly expand again, That would indicate speculative capital is flooding back in, and the risk of an overheated market would start to increase. But for now: BTC is up about 35% from the August low, OI is at its lowest since March. The underlying structure of this rally Might actually be healthier than the price suggests. Price increases aren’t scary; what’s scary is leverage spiraling out of control. And right now, it’s the exact opposite. Always analyze responsibly with your positions.