The Bitcoin market recorded another reflection last week, because the prices have jumped over 12%, reaching the local peak of 95,600 USD. In the ongoing market euphoria, the outstanding analytical company Blockchain Glassnode shared some essential achievements on Bitcoin derivative markets.

Bitcoin brief factories grow despite the price rally, determining the variation stage

Despite the stubborn Trade Week, traders derivatives are approaching the Bitcoin market with skepticism, as evidenced by the accumulation of brief positions.

In the last x post On April 25, Glassnode announced that the open interest (OI) in continuous Bitcoin swaps increased to 218,000 BTC, which means an boost of 15.6% from the beginning of March. According to market activity, this boost in this interest is consistent with an increased lever, introducing the potential of market variability through liquidation or stops.

Basically, it is expected that an boost in open interest in connection with the price rally will signal long -term market trust. However, Glassnode discoveries revealed the opposite scenario. Despite the stubborn steps of Bitcoin last week, brief market positions seem to dominate the eternal Futures markets. This development is indicated by a decrease in the average financing, which now fell into a negative territory to sit about -0.023%. The eternal financial rate is a periodic payment between long and brief traders aimed at maintaining the price of the contract in accordance with the basic price of Spot.

A negative financing rate indicates that brief traders pay long traders, because the eternal price of the Bitcoin contract is listed below the spot price. This is due to a greater number of brief items, because traders are largely bears with Bitcoin, even despite the last profits.

In addition, the 7-day movable (7DMA) financing bonus with long financing dropped to USD 88,000 per hour, strengthening this brief moods. This inheritance trend indicates impoverished demand for long positions, because traders show brief prejudices.

However, Glassnode presents a stubborn note that states that the current combination of growing lever and brief positions pave the way to a potential brief squeeze, in which the unexpected upward movement up the price forces brief sellers to close their positions, and thus directs even higher prices.

Bitcoin price review

At the time of writing, bitcoins trade at USD 94,629 after the withdrawal of 1.01% from the local peak price on April 25. Despite the promotions on the Futures market, the BTC market remains highly stubborn, indicated by profits of 1.02%, 11.12% and 8.32% in the last, seven, seven and thirty days, respectively. With a market capital of $ 1.88 trillion, the most essential cryptocurrency is the largest digital and fifth assignment in the world.

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