Connect with us
Active Currencies 14044
Market Cap $2,569,199,583,254.17
Bitcoin Share 50.80%
24h Market Cap Change $0.38

Bitcoin: Traders take short positions as dip below $27,000 looms

2min Read

Bitcoin drops below the $27,000 mark with traders’ bearish onslaught, but funding rates stay bullish. Meanwhile, RSI hints at a pivotal turn.

Bitcoin’s aggressive short traders battle long traders as the price goes below $27,000

Share this article

  • There has been an aggressive shorting of BTC recently.
  • BTC has lost over 1% in value and dropped below the $27,000 price level.

Despite Bitcoin [BTC] reaching a price of $27,000, certain traders opted for a bearish stance. How well have they performed thus far, and what is the prevailing funding rate?


Read Bitcoin (BTC) Price Prediction 2023-24


Bitcoin sees aggressive shorts

As per a report from Santiment, Bitcoin experienced significant bearish activity among traders on specific exchanges. The data chart revealed that traders were engaged in shorting of BTC on Deribit and Binance despite the price surging to the $27,000 range.

Also, Santiment noted that this aggressive shorting had started a week prior, coinciding with a 4% increase in BTC’s value during that period. It was anticipated that this shorting trend would persist, potentially leading to further liquidations, which could, in turn, drive up the price of Bitcoin.

Bitcoin short traders

Source: Santiment

Bitcoin’s funding rate and liquidation in the past 24 hours

Despite the intensified shorting activity on Deribit and Binance, the overall funding rate for Bitcoin remained in positive territory. According to data from Coinglass, the current funding rate for Bitcoin was approximately 0.0036%.

While there has been a slight dip in the funding rate, the persistent prevalence of a positive rate indicates that a greater number of traders were still placing their bets on a price increase, even in the face of aggressive short positions.

However, long positions have been experiencing a higher rate of liquidations lately, primarily due to the modest decline in BTC. The liquidation chart showed that on 20 September, long liquidations were over $16 million, whereas short liquidations were over $6.7 million.

As of this writing, long liquidations had dropped to slightly over $7 million, while short liquidations were less than $200,000.

Furthermore, an examination of the funding rate on Deribit and Binance revealed that they were positive as of this writing.

BTC close to crossing below the neutral line

The downward trajectory in BTC’s price has finally breached the $27,000 price level, as indicated by its daily timeframe chart.


How much are 1,10,100 BTCs worth today


As of this writing, BTC was trading with a loss exceeding 1%, settling around $26,700. This marked the second consecutive day of losses, with a decrease of less than 1% recorded in the previous trading session.

Bitcoin price movement

Source: TradingView

Additionally, this price decline has led to a sharp drop in the Relative Strength Index (RSI) line. While the RSI line remained above the neutral threshold, there exists a considerable likelihood of it dipping below this level should the downward price trend persist.

Share

Adewale is a full-time journalist at AMBCrypto. While he is increasingly fascinating by the world of blockchain and cryptocurrencies, Adewale holds a degree in International Relations. Besides working on insightful articles that touch upon the crypto-space's hottest issues, he finds joy in supporting Manchester United and Afrobeat music.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.