Binance users have been increasingly leaning toward short positions lately—a trend that could lead to risky decisions. Recently, open interest on Binance hit an all-time high (ATH) of $12 billion. After a sharp correction, it dropped by 37% to $7.5 billion, indicating a significant market flush. This likely cleared out many long positions and created room for short entries.
Meanwhile, the funding rate surged to around 0.04%, signaling an overly long-heavy market. As Bitcoin retraced from the $75,000 level, funding rates declined. Lately, Binance has been showing negative funding rates, indicating growing short pressure and rising bearish sentiment among traders.
Another notable metric is the difference between the spot and perpetual prices. Currently, the spot price is approximately $60 higher than the perpetual, suggesting spot accumulation is occurring despite the prevailing short sentiment in the derivatives market.
Taken together, these Binance metrics point toward a market that may be in a reset or accumulation phase, potentially preparing for the next bullish move. For those analyzing market structure, this combination of declining open interest, funding dynamics, and spot-perpetual divergence provides critical insights into what may come next.
Written by BorisVest
