Friends, have you heard? Bitcoin has been on fire these days! Yesterday, it jumped 4.16% and the price soared to $98,056. This pre-Christmas market is really eye-catching!
Do you know? Now, there are many people who short Bitcoin, and there are a lot of open contracts, but the financing rate has dropped. What does this mean? It means that everyone is betting that Bitcoin will fall, but in the end, Bitcoin still rose. Isn't this a slap in their face!
An analyst named Traders Oasis said that Bitcoin may take a short break during Christmas, but once the demand for short positions comes up, it will be another big rise!
He also said that the demand for Bitcoin from institutions has not been enough recently, so the price has adjusted a bit. But if you look at the Coinbase premium index, once it enters the negative zone, the market will rise again. Why? Because the financing rate has dropped, but the open contracts have gone up, which means that everyone is shorting!
But think about it, if there are more people shorting, does that mean that many people think the price is going to fall? But if too many people buy, the shorts will be squeezed out, and then buyers will rush in, and the rebound will come!
Look at how strong the demand for Bitcoin has been in the past three days! The capital flow ratio has increased a lot, which shows that more money has been invested in Bitcoin, and everyone is willing to invest money in BTC. In this way, the price will rise!
Moreover, with more money flowing in, there will be less BTC in the exchange, which makes it more scarce! When more people buy cryptocurrency, it will become scarce, and the increase in inventory-to-flow ratio is proof of this. Therefore, the price of Bitcoin will rise, with more demand and less supply, the price will naturally go up!
I think there is a good chance for a strong rebound in the market after Christmas! Everyone must seize the opportunity!
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