Bitcoin data on the Binance platform, which links the Bitcoin price to the Z-Score (the monthly volume indicator for Bitcoin futures contracts), measures how far current trading activity deviates from its annual average. In the latest reading, the Z-Score is nearing -1.95, one of the lowest values ever recorded.
This deeply negative reading indicates that futures trading volumes are significantly below their long-term average, reflecting a clear contraction in liquidity and a decline in leverage. At the same time, Bitcoin is trading in a downward trend near $66,000, consistent with a weak momentum environment in the derivatives market.
This convergence between the price decline and the low Z-Score suggests that the current selling pressure is not driven by excessive speculative activity or leverage expansion, but rather reflects a cooling and repositioning phase among traders. Historically, such environments often emerge during periods of healthy correction or ahead of the formation of new price bases.
From a structural perspective, the Z-Score falling to extreme levels in parallel with the price decline indicates that the market is shedding weak positions and rebalancing away from overheating. This type of behavior is generally positive over the medium term, as it reduces the risk of widespread forced liquidations.
the Z-Score reaching approximately -1.95 while Bitcoin trades near $66,000 reflects a period of weakening momentum, but it could also form the foundation for a more stable price structure before any significant directional move in the near future.
Written by Arab Chain