On April 25, glassnode stated that as Bitcoin's price rebounds, market leverage is rising, thereby increasing the possibility of volatility amplified by liquidations and stop-losses. Although open contract positions have increased, the average funding rate has dropped to -0.023%, indicating a market bias towards short positions. Bitcoin traders seem to be shorting the current rally, and if bullish momentum continues, it could trigger a short squeeze.
The 7-day moving average of long-side funding rate premium has declined and continues to fall. This suggests a reduced demand for Bitcoin long exposure, further reinforcing the current view that perpetual contracts are predominantly short-positioned.
