Data shows the Bitcoin shorts that had amassed after the recent crash have now been squeezed following the recovery in the asset’s price.
Bitcoin Shorts Take Beating As Price Shows Sharp Rebound
According to data from the on-chain analytics firm Santiment, the funding rate on Binance had become deeply negative after the crash. The “funding rate” here refers to the number of periodic fees that the perpetual contract traders are exchanging with each other.
When the value of this metric is positive, it means that the long traders are paying a premium to the short investors in order to hold onto their positions right now. Such a trend implies that bullish sentiment is held by the majority currently.
On the other hand, negative values of the indicator suggest that a bearish sentiment is more dominant in the market at the moment, as the shorts are paying a fee to the longs.
Now, here is a chart that…
