Bitcoin Short Positions are Increasing as Traders in East Africa Shorting the Flagship Cryptocurrency in Bulk
Data analysis from the market signifies that the number of short positions on Bitcoin has been increasing. For many, this could mean the official arrival of the bear market. However, experts claim that it could mean a positive trend for the price appreciation of the beacon coin. It seems that the ongoing FUD might be packing some good news for the Bitcoin maximalists.
The analytics published by market sentiment calculation enterprise Santiment claims that BitMEX traders have been shorting the flagship cryptocurrency. BitMEX is a crypto exchange platform based in East Africa. The rates for the short position are noticed to be the lowest in the last 14 months. The company representatives claim that it is a good omen for those who want to see Bitcoin going up.
Traders at BitMEX are Going for the Steepest Bearish Rates for Bitcoin Shorting Positions
It has been reported that BitMEX traders are going all-in with their bear market sentiment. They are good in numbers and have been able to create a huge pile of Bitcoin shorts in a little amount of time. The most interesting thing about these short positions is that they are rated at the lowest possible rates. The BitMEX traders have Bitcoin shorts for as low as $4K to $7K.
This price mark is many times smaller than the current price of Bitcoin in the market. Such a tiny price tag has not been associated with Bitcoin since April 2020. Another crypto analytic service on Twitter called Bitcoin Backer reported that the last time the traders were so confident about a bear market when the pandemic broke out for the first time in March last year.
Santiment has recently shared a chart on their official Twitter account. The chart depicts that funding rates have slowed down and dropped. The service also claimed in a tweet that Bitcoin prices have usually gone up when a crowd-level market FUD sets in. The same service added one more tweet to the thread.
The next tweet reflects that the rise of interest from institutional and retail investors to buy Bitcoin from the dip has declined. The chart shared by Santiment points out that the current situation would make the market fertile for a price appreciation. Both analytics services agree that Bitcoin prices can get back to the $65K price point.