Bitcoin Permanent Exchange Signal Short Deviation in Price Rebound – Details
The Bitcoin market has rebounded again in the past week as prices rose more than 12% to a local peak of $95,600. Amid the ongoing market euphoria, the well-known blockchain analytics company GlassNode shares some important developments in the Bitcoin derivatives market.
Despite price rallies, Bitcoin short bets rose, setting volatility
Despite a bullish trading week, derivatives traders are still approaching the Bitcoin market with skepticism, which can prove the short position of leverage.
In a recent X post on April 25, GlassNode reported that open interest (OI) for Bitcoin permanent swaps climbed to 218,000 BTC, an increase of 15.6% from early March. In line with market activity, the growth of open interest is consistent with the increase in leverage, thus introducing the potential for market volatility through liquidation or parking.
Typically, the rise in open interest is expected to indicate long-term market confidence. However, GlassNode’s discovery reveals the opposite. Although Bitcoin has gained views over the past week, short-term market positions seem to dominate the permanent futures market. This development on development shows that the average financing rate has declined and has now slipped into negative territory, at around -0.023%. Permanent funding rates are regular payments between long traders designed to align contract prices with basic spot prices.
The negative fund rate shows that short traders pay long traders because the price of Bitcoin’s permanent contract is lower than the spot price. This is due to traders’ almost bearishness on Bitcoin, even with recent earnings, which is due to higher short positions.
Additionally, the 7-day moving average (7DMA) of long-term fund premiums has dropped to $88,000 per hour, strengthening this short-lived sentiment. This downward trend indicates a gradual decline in demand for long positions as traders show brief bias.
However, GlassNode proposes a bullish note, pointing out that the current combination of leverage and short positions paves the way for potential short squeezes, in which case the unexpected upward price makes short sellers force short sellers to close their positions, thus making the price higher.
Bitcoin Price Overview
At the time of writing, Bitcoin traded at $94,629 after its local peak recovery rate of 1.01% on April 25. Despite the spread of the permanent futures market, the BTC market remains highly bullish, with a growth of 1.02%, 11.12%, 11.12%, and in the past 7.32%, the difference is almost 7.32% and in 7.32%, the difference is 7.32%. The Prime Minister’s cryptocurrency has a market capitalization of US$1.88 trillion, making it the world’s largest digital asset and the fifth largest asset.
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