Bitcoin Clears Its Biggest Leverage Test Since 2023

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Bitcoin just cleared its biggest leverage test since 2023. CryptoQuant analyst Darkfost confirmed the market went through its sharpest deleveraging phase in nearly three years, according to CryptoQuant’s Binance deleveraging signal chart, published September 7, 2026. 

Binance’s Bitcoin open interest briefly dropped below its 180-day moving average during the reset, a rare event that’s only happened a handful of times this cycle.

How the Setup Formed

The stage was set over roughly six weeks in July. Open interest climbed steadily while funding rates turned negative, a combination that signals growing demand for short positions. 

That positioning left the market exposed. Once Bitcoin started moving higher, short positions began getting liquidated through forced buying. 

That buying pushed price up further, which triggered more liquidations, creating a self-reinforcing squeeze. 

Techgaged tracked the earlier stage of this same cycle back in June, when Bitcoin cracked below $70,000 as bearish positioning first started building.

Where Open Interest Sits Now

Binance’s Bitcoin open interest currently stands at roughly $9.6 billion. That’s still above the 180-day average of $8.3 billion, meaning leverage hasn’t disappeared, it’s just been reset from an extreme. 

Binance alone accounts for about 37% of total Bitcoin open interest across all exchanges, so a move this size on a single venue carries real weight for the broader derivatives market.

Why the Chart Calls This the Biggest Since 2023

The CryptoQuant chart marks every past deleveraging phase in red, running from 2023 through 2026. 

Several stretches show open interest dipping below its moving average, but Darkfost’s analysis flags this latest one as the sharpest drop in that entire window. 

It also coincided with one of the largest liquidation events in Bitcoin’s current cycle, across both long and short positions.

Seven Days of Whiplash

$79,409.91. That’s Bitcoin’s price on September 7, 2026 (11.00 UTC), up 0.9% for the week. The number undersells what actually happened. 

Price sank toward $77,000 through September 2 and 3, then ripped higher to $81,500 by September 4 in a matter of hours, before drifting back down into the $79,000 to $80,000 range for the rest of the week. 

Techgaged also tracked the ETF-side weakness that preceded this reset, noting how spot Bitcoin funds logged their darkest week yet months before this deleveraging cycle began.

What Comes Next

Darkfost’s warning is the piece worth watching closest. Traders are already re-entering the market, which is helping fuel the current rebound. 

But leverage rebuilding too quickly, without matching spot demand, is exactly the setup that created this deleveraging event in the first place. 

The next real test isn’t whether Bitcoin holds $80,000. It’s whether open interest climbs back to its prior extreme before the market’s had time to properly digest this reset.

Disclaimer:
This article is for informational purposes only and does not constitute financial, investment, or trading advice. The views expressed are based on publicly available data, market observations, and the author’s interpretation at the time of writing. Cryptocurrency markets are highly volatile and unpredictable, and past performance or current technical setups do not guarantee future results. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions. TechGaged does not accept liability for any losses incurred based on the information presented.

The post Bitcoin Clears Its Biggest Leverage Test Since 2023 appeared first on TechGaged.com.