$US Morning market briefing: Gate perpetuals are trading at around 0.01247, down 32.8% over 24 hours, with a daily high of 0.01878 and low of 0.0122—a range of over 50%. The main leg down came between 10 and 11 p.m. yesterday, when the price plunged from 0.0177 to 0.0134 in two hours. Trading volume during the 11 p.m. hour was the highest of the day. The subsequent rebound peaked at just 0.0149 and failed to go any higher. At 3 p.m. today, another surge in volume drove the price below support to 0.0123; volume during that hour was about 1 million U, the second-highest of the day. It is now hovering near the daily low of 0.0122.
There are two things to note about the reasons behind the drop. First, it wasn't caused by weakness in the broader market: Bitcoin is around 86,133, up 1% over 24 hours, and the market is generally stable. US is facing its own unresolved selling pressure. Second, the funding rate is around -0.0035% (settled every four hours), so short positions aren't crowded. As the price fell, there was neither a rush to short nor money flowing in to buy the dip—just a slow decline on diminishing volume.
Conclusion: Don't buy the dip. 0.0122 is the last support level for today; if it breaks, there will be no clear reference point, so stay out and wait for the price to stabilize. To consider a rebound trade, wait for a high-volume move back above 0.0130, then see whether it can return to the hourly low at 0.0134. If you do enter, keep the position small and place a stop-loss below 0.0119. If Bitcoin falls back below 85,000, weaker assets are likely to see a further drop.
There are two things to note about the reasons behind the drop. First, it wasn't caused by weakness in the broader market: Bitcoin is around 86,133, up 1% over 24 hours, and the market is generally stable. US is facing its own unresolved selling pressure. Second, the funding rate is around -0.0035% (settled every four hours), so short positions aren't crowded. As the price fell, there was neither a rush to short nor money flowing in to buy the dip—just a slow decline on diminishing volume.
Conclusion: Don't buy the dip. 0.0122 is the last support level for today; if it breaks, there will be no clear reference point, so stay out and wait for the price to stabilize. To consider a rebound trade, wait for a high-volume move back above 0.0130, then see whether it can return to the hourly low at 0.0134. If you do enter, keep the position small and place a stop-loss below 0.0119. If Bitcoin falls back below 85,000, weaker assets are likely to see a further drop.