[Analysis] “Bitcoin sees short positions dominate in derivatives markets…growing risk of long-position liquidations”
Summary
- CryptoQuant said it analyzed that the 30-day simple moving average of the Positioning Index for the Bitcoin derivatives market plunged, shifting the market to a short-position-centric structure.
- It said that while the indicator plunged for about two weeks, the Bitcoin price fell sharply from $74,000 to $66,000.
- It explained that as forced liquidations increased among investors who had bet on a rise, a structure in which downside bets lead and upside bets continue to shrink has persisted, making it difficult to expect a clear rebound.
Forecast Trend Report by Period
Traders are increasingly taking bearish bets in the Bitcoin (BTC) derivatives market, data showed.
On the 3rd (Korea time), Axel Adler Jr., a CryptoQuant contributor, said in a report that “as the 30-day simple moving average of the Bitcoin Positioning Index fell sharply over a short period, the market shifted into a short-position-centric structure.”
The Bitcoin Positioning Index is an indicator that shows the direction and aggressiveness of investors’ position entries. Adler Jr. said, “While the indicator dropped sharply for about two weeks, Bitcoin’s price also fell substantially, from $74,000 to $66,000.”
In particular, as losses mounted for investors who had bet on the upside, forced liquidations increased as well—apparently reinforcing the dominance of short positions. Adler Jr. explained, “The current market structure is one in which downside bets lead and upside bets continue to shrink,” adding that “until this flow changes, it will be difficult to expect a clear rebound.”
Uk Jin
wook9629@bloomingbit.ioH3LLO, World! I am Uk Jin.
