$BTC
Bitcoin Finds First Support Point, Investors Interested in Short Positions
According to a cryptocurrency analyst, the Bitcoin price found its first support point after a short-term decline.
According to the analysis shared on the blockchain analysis platform CryptoQuant, Bitcoin found support at $58,250 after the volatility experienced since last week.
Draws attention to the derivatives market
The analyst at CryptoQuant examined the liquidation delta between long and short positions in the Bitcoin derivatives market.
This indicator represents the difference between liquidated long and short Bitcoin positions. The chart, which provides information about the sentiment among investors, shows which is stronger between liquidated long positions (bear market) or short positions (bull market).
Bitcoin begins to stabilize
The analyst wrote that Bitcoin began to stabilize as it returned to the first liquidation zone between long positions, $58,250.
According to CoinGecko data, the Bitcoin price has moved upwards after falling to this level and has exceeded the $59,000 level.
“At the same time, funding rates have turned negative, around -0.01%. This shows that retail investors are increasingly interested in opening short positions,” the analyst commented.
The funding rate can be positive or negative depending on the price difference between the perpetual contract and the spot price and interest rates.
A positive funding rate means that buyers are paying sellers, which encourages futures prices and spot prices to align. A negative funding rate means that sellers are paying buyers and the market balance is maintained.
