$BSP 24 hours drop 5.587%, price smashed to 33.63, funding rate is negative at 0.0002, and shorts are paying longs.
This selloff is clearly because Trump made remarks that US stocks need to adjust, and the market all rushed to run away. But a negative funding rate means shorts have already piled up—they're all betting on the price to keep falling. This kind of consensus often goes against human nature, making it prone to a short squeeze.
My contrarian take: The Trump trade has always been highly volatile—once the news is out, it's usually the rebound. Now shorts have high holding costs; if the price rises a bit, they have to cut losses, triggering a cascade of liquidations.
Invalidation conditions: If the price breaks below 32, or if the funding rate turns positive, I will admit defeat and exit. Action: At the current price of 33.63, I place a buy order, stop loss at 32, take profit at 35, using 5x leverage.
Trading tag: #TradFi #链上美股 #BSP
Where do you think this setup is most likely to be wrong?
This selloff is clearly because Trump made remarks that US stocks need to adjust, and the market all rushed to run away. But a negative funding rate means shorts have already piled up—they're all betting on the price to keep falling. This kind of consensus often goes against human nature, making it prone to a short squeeze.
My contrarian take: The Trump trade has always been highly volatile—once the news is out, it's usually the rebound. Now shorts have high holding costs; if the price rises a bit, they have to cut losses, triggering a cascade of liquidations.
Invalidation conditions: If the price breaks below 32, or if the funding rate turns positive, I will admit defeat and exit. Action: At the current price of 33.63, I place a buy order, stop loss at 32, take profit at 35, using 5x leverage.
Trading tag: #TradFi #链上美股 #BSP
Where do you think this setup is most likely to be wrong?