$BBX In the past 24 hours, it fell 1.552%. The quote is 8.185. The funding rate is 0, and open interest is 113,779.44. Convert open interest to notional using the price: roughly $930,000. The trading volume for the same period is $1.99 million, and turnover is a bit more than twice the inventory.
This order book has no direction. Prices are falling, but the funding rate is zero, which means shorts are not high enough to require paying longs—and longs are not paying any funding costs either. Both sides aren’t willing to hold positions overnight; they’re just doing quick trades and running.
The trading volume being double the open-notional further suggests that positions are being churned rapidly, with no one willing to hold overnight.
The strongest counter-evidence is that during the downtrend, there’s a continuation. If afterwards open interest keeps increasing, and the price doesn’t rebound, shorts will accumulate and the funding rate could turn negative. But right now the funding rate is 0—shorts have no position yield from funding, and it’s purely the price decline. As soon as the price goes sideways, the shorts pull out first.
My action is not to chase shorts. I’ll wait until the funding rate turns negative and the price stops printing new intraday lows before considering a short entry. If the price rises back above 8.185 and the funding rate turns positive, I’ll try going long. If the growth rate of open-notional starts exceeding the trading volume, then this “no direction” conclusion becomes invalid.
Trading tag: #TradFi #链上美股 #BBX
Where do you think this assessment is most likely to be wrong?
This order book has no direction. Prices are falling, but the funding rate is zero, which means shorts are not high enough to require paying longs—and longs are not paying any funding costs either. Both sides aren’t willing to hold positions overnight; they’re just doing quick trades and running.
The trading volume being double the open-notional further suggests that positions are being churned rapidly, with no one willing to hold overnight.
The strongest counter-evidence is that during the downtrend, there’s a continuation. If afterwards open interest keeps increasing, and the price doesn’t rebound, shorts will accumulate and the funding rate could turn negative. But right now the funding rate is 0—shorts have no position yield from funding, and it’s purely the price decline. As soon as the price goes sideways, the shorts pull out first.
My action is not to chase shorts. I’ll wait until the funding rate turns negative and the price stops printing new intraday lows before considering a short entry. If the price rises back above 8.185 and the funding rate turns positive, I’ll try going long. If the growth rate of open-notional starts exceeding the trading volume, then this “no direction” conclusion becomes invalid.
Trading tag: #TradFi #链上美股 #BBX
Where do you think this assessment is most likely to be wrong?