Bitcoin (BTC) price rose from $ 47k to over $ 53k on April 26, and a $ 150 million short position was liquidated in just a few hours.
The cryptocurrency market has generally experienced a short position squeeze, and altcoins such as Ether (ETH) and Binance Coin (BNB) have also increased by 15 percent.
With bitcoin gaining 12 percent during the day, the futures market was completely zeroed and funding rates returned to normal levels.
Is the short position stuck a positive sign?
Short position squeeze occurs in the futures market by liquidating short positions in a narrow time frame.
When short positions are liquidated, investors are forced to repurchase their positions and as a result, the demand for buyers in the market increases.
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With the rapid decrease in the number of short positions, long positions and buy orders are beginning to dominate the market. The increase in the number of long positions results in higher funding rates. A funding rate of more than 0 percent means that long position holders must place a portion of their positions on short positions every eight hours.
The funding rate has remained relatively low despite BTC’s strong rally in the past 24 hours.
The funding rate in major exchanges still appears to be below the neutral level of 0.01 percent, according to bybt.com data.
This means that there are still short positions in the market. So BTC has the potential to rise even further.
Investors are targeting 55 thousand dollars
Investors think it is important to exceed $ 55,000 in the short term to break a new record.
Crypto derivatives investor Johnny, stated that:
“We had a strong rebound. The danger has not been avoided yet. If we exceed $ 55,000, the record may be in question again.”
Adnan van Dal, a former institutional investor, said that if Bitcoin does not fall until the US markets open, there is a possibility of a bigger rally. suggested that it will increase.