This afternoon’s drop pretty much washed out the leverage used to chase longs.
In the last 4 hours, the whole market liquidated $157 million, and 95% of it was long positions. Just Bitcoin alone was $68.35 million. At the current price of $83,510, it’s down 2.7%, and it’s less than 1% away from the all-day low around 82,800.
After it’s done, check the funding rate: on Binance, the Bitcoin funding rate is down to only 0.000231%, collected once every 8 hours, annualized at 0.25%. Going long is basically like borrowing for free. The low fee rate pretty much explains why the leverage for chasing longs has been wiped out.
The outside money hasn’t left. Over the past 7 days, Bitcoin ETF inflows net totaled $1.91 billion.
Tonight, watch two things: whether the 83,000 integer level breaks; and after the US stock market opens, whether the bulls will dare to take longs.
Do you think tonight is a second dip, or a stabilization and rebound?
Check in real time: https://www.coinboss.com/liquidations