Home Markets Bitcoin, Ethereum Trade Secrets Revealed; maybe make it short…

Bitcoin, Ethereum Trade Secrets Revealed; maybe make it short…

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Bitcoin, Ethereum Trade Secrets Revealed;  maybe make it short…

The infamous oscillating volatility of the crypto market continues to see different fortunes each month. From traders selling their tokens at a loss to betting against the market (hoping for a slight upside), the market has seen it all. But what’s new this time around?

Hold on

Bitcoin has fallen since hitting an all-time high of $69,000 in November 2021. Altcoins have also witnessed the wrath of the general market downturn.

In reality, Ethereum fell 11.45% while Bitcoin fell 9.29%. Similarly, the crypto liquidation reached 673 million just two days ago. But here’s something to look forward to according to Santiment, the analytics platform.

Following the market rally, cryptocurrency exchanges seen high levels of short trading is coming, as people fear it will fall back to June levels.

Traders bet against the market as the price showed vital signs of life. The reading of average financing rate supported this story.

The negative funding rate indicated that perpetual prices had fallen below the marked price.

Source: Santiment

This rapid change in funding rates indicated that sentiment turned from greed to fear. Thus, signaling a potential sign of a bottom.

Ergo, capitalizing on this “bearish” mindset, betting against the market tide made sense for traders. Healing further added, “As long as they are betting against the markets, there is a higher chance of an upside.”

Not a bad omen after all

Ki Young Ju, the CEO of on-chain analytics resource CryptoQuant, also showed how historically a low funding rate “could be a buy signal.” Consider his tweet from last year, recounting the same result.

Needless to say, going against the grain in a bullish backdrop could help buy cryptos at a discount.

Moreover, the Unrealized net profit and loss (NUPL) surged and turned positive.

Overall, by referring to the weighted average funding rate, it can be said that short-term carriers had congested the network, and a rebound could be in play.

In fact, at press time, BTC and ETH showed a small rise in CoinMarketCap, but the rise was not large enough to help cryptocurrencies break above short-term resistance level(s).

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