Can short-squeeze narrative for Ethereum, Bitcoin actually deliver results
Bitcoin EthereumCan short-squeeze narrative for Ethereum, Bitcoin actually deliver results09 / 14 / 2022Balita ng Ethereum ng Bitcoin Negative market sentiment for Ethereum [ETH] at Bitcoin [BTC] caused derivative funding rates to remain negative. While both prices suffered a major setback, short traders followed the selling ritual. Now, could this provide an opportunity for the patient (long) traders following a “potential” squeeze? Malalim na sugat Ang mga rate ng pagpopondo for BTC and ETH have remained negative for derivative traders for quite a while. Furthermore, derivative prices have kept funding rates generally below zero since May. Ergo, depicting the overall sentiment of the traders and how they viewed future market conditions. But could this narrate a potential short-term bull signal for traders? Well, yes. The anualized funding rate spread sa pagitan ng BTC at ETH perpetual pushed to a new all-time high (ATH) of 77% as per data from Glassnode. The graph below showcased the same. Although, short trades seem to be focused on ETH rather than BTC given its Pagsamahin season. In this regard, glassnode idinagdag, “This indicates traders are heavily short ETH may kaugnayan sa BTC, likely speculating/hedging for the upcoming Merge.” This means hedging their risk exposure to ETH by going short perpetual futures. In