The data shows that the rate of bitcoin financing remained negative during the last price gathering, a sign that short behavior is dominant.
Bitcoin financing rates in red
In new mail In X, the analyst on the series talked about the trend in the Bitcoin financing rate. The “financing rate” indicates an indicator that tracks the amount of periodic fees exchanged by the futures market dealers between each other at the present time.
When the value of this scale is positive, this means that long contract holders pay in addition to the short nodes in order to stick to their locations. This trend indicates that the upcoming feelings are shared by most investors on derivative platforms.
On the other hand, the indicator under the zero mark means that those with palaces exceed the long match and the dominant feeling is the dominant.
Now, here is the graph that the analyst that shows the trend in the Bitcoin financing rate in the past few years:
The value of the metric seems to have dipped into the negative region in recent days | Source: @_Checkmatey_ on X
As visible in the above graph, the Bitcoin financing rate has recently slipped to the negative area, indicating that short behavior has become more dominant on exchanges.
This trend comes interesting while BTC was going through a recovery gathering collection. This will naturally indicate that the futures market users do not believe that this operation will continue.
This descending mindset can actually play in favor of the cryptocurrency, however, as if the demand continues in the march, these short pants will eventually finish finding the liquidation, thus working as fuel for operation.
CheckMate also noticed in the reply publication, the market has already seen large short qualifications.
The trend in the long vs short liquidation dominance over the past year | Source: @_checkonchain on X
It remains now to see whether this trend of short pressure will continue in the coming days, which may allow the Rally to recover the Bitcoin prices.
Although future market users may get a landmark, the overall feelings in the encrypted currency sector have turned into a rise in prices, and the Fear & Greed Index suggests.
How the Fear & Greed Index has changed during the last twelve months | Source: Alternative
Fear & Greed Index is an indicator created by substitute It uses various market factors to determine the feelings between bitcoin investors and other digital assets. The scale currently sits at a value of 63, which means that the mentality of greed is the dominant among merchants.
BTC price
At the time of this report, Bitcoin is trading about $ 93,200, an increase of more than 9 % in the past seven days.
The trend in the BTC price during the last five days | Source: BTCUSDT on TradingView
Distinctive image from Dall-e, alternative.me, Chart from TradingView.com
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