The perpetual contract long and short trading volume deviations on Binance, Bybit, and other exchanges remain below the 90-day median (red line), but during the recent pullback, it is evident that the bearish sentiment is gradually weakening. The chart shows a price decline, while the yellow, blue, and gray curves are approaching the red line.

This indicates that the current futures market is transitioning from "extremely bearish" to "cautiously bullish." If you were to ask if this is beneficial, I would say: "Of course it is!". Do you see the two curve trends circled by the red dashed line in the chart? They look quite similar, don't they?

For example, in my article on December 15 titled "Why is the ETF Losing Purchasing Power?", I discussed a negative feedback loop that we are currently facing (see citation). There is hope to break this loop only when bullish sentiment starts to gradually recover.

This is also the process of traders repricing the market.