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- There has been some aggressive shorting of BTC recently.
- BTC has lost more than 1% in value and fallen below the $27,000 price level.
Despite Bitcoin [BTC] When they reached a price of $27,000, some traders took a bearish stance. How well have they performed so far and what is the prevailing funding rate?
Read Bitcoin (BTC) price prediction 2023-24
Bitcoin sees aggressive shorts
According to a report from SantimentBitcoin experienced significant bearish activity among traders on specific exchanges. The data chart showed that traders were busy shorting BTC on Deribit and Binance despite the price rising to the $27,000 range.
Santiment also noted that this aggressive shorting had begun a week earlier, coinciding with a 4% increase in the value of BTC during that period. This short trend was expected to continue, potentially leading to further liquidations, which could in turn push up the price of Bitcoin.
Source: Santiment
Bitcoin’s funding rate and liquidation in the last 24 hours
Despite intensified shorting activity on Deribit and Binance, the overall funding rate for Bitcoin remained in positive territory. According to data from Mint glassthe current funding rate for Bitcoin was approximately 0.0036%.
While there has been a slight decline in funding rates, the continued positive rate suggests that a greater number of traders were still betting on a price rise, even despite aggressive short positions.
However, long positions have seen a higher number of liquidations lately, mainly due to BTC’s modest decline. The liquidation chart showed that on September 20, long liquidations were over $16 million, while short liquidations were over $6.7 million.
At the time of writing, long liquidations were down to just over $7 million, while short liquidations were less than $200,000.
Furthermore, an examination of the funding rate on Deribit and Binance showed that they were positive at the time of writing.
BTC is approaching the border below the neutral line
The downward trajectory of BTC’s price has finally crossed the $27,000 price level as shown by the daily timeframe chart.
How much are 1,10,100 BTCs worth today?
At the time of writing, BTC was trading at a loss of over 1%, which amounted to approximately $26,700. This was the second consecutive day of losses, with the stock down less than 1% during the previous trading session.
Source: TradingView
Furthermore, this price drop has led to a sharp decline in the Relative Strength Index (RSI) line. Although the RSI line remained above the neutral threshold, there is a significant chance that it will fall below this level if the downward price trend continues.
