Let's calculate the holding cost: $BTC at the current funding rate, equivalent to an annualized rate of about .
In other words, holding a short position means paying the longs at every settlement. The longer you hold the short, the more disadvantaged you become. Once the price stops falling, short covering can easily push it higher.
Don't use excessive leverage.
In other words, holding a short position means paying the longs at every settlement. The longer you hold the short, the more disadvantaged you become. Once the price stops falling, short covering can easily push it higher.
Don't use excessive leverage.