Glassnode: Bitcoin's rise attracts short bets, or there is a risk of short squeeze
On April 25th, Glassnode reported that as the price of Bitcoin rebounds, market leverage is increasing, increasing the possibility of volatility exacerbated by liquidation and stop-loss. Despite the increase in open positions, the average funding rate has dropped to -0.023%, indicating a market bias towards short positions.
Bitcoin traders appear to be shorting this round of the uptrend. If the bullish momentum continues, it may trigger a short squeeze situation. The 7-day moving average of the premium on the bullish funding rate has decreased and continues to decline. This indicates a reduced demand in the market for Bitcoin long positions, further reinforcing the current view that perpetual contract positions are predominantly short.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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