I’m monitoring the 72-hour moving average (MA, EMA, WMA) of BTC's funding rate.
This marks roughly the fourth dip into negative territory since the beginning of this year.
Compared to the previous two instances, this drop has occurred at relatively higher price levels.
Does this state—where shorts are paying—encourage position unwinding?
If the derivatives market starts to heat up again, I expect liquidations to pick up as well.
Written by nino
