Bitcoin Perpetual Swaps Signal Short Bias Amid Price Rebound – Details
Bitcoin prices increased over 12% to a local peak of $95,600 in the past week. Despite this bullish trend, there is a rise in leveraged short positions among derivative traders, indicating skepticism in the market. Open Interest in Bitcoin perpetual swaps rose to 218,000 BTC, a 15.6% increase since early March, suggesting potential volatility due to increased leverage. The average funding rate has turned negative at -0.023%, reflecting a dominance of short positions as traders remain bearish despite recent gains. The 7-day moving average of long-side funding premiums has decreased to $88,000 per hour, indicating reduced demand for long positions. However, the combination of rising leverage and short positions could lead to a short squeeze, potentially driving prices higher. Currently, Bitcoin trades at $94,629, with a market cap of $1.88 trillion, maintaining its status as the largest digital asset.
