$BTC Funding is moving more into the negative as we're moving up. The majority of this is likely caused by people short hedging their spot holdings as we're coming close to a big resistance zone, which would make sense.
1/5
1/5
The thing is, if there's really a lot of people piling into shorts at around the same level. Price tends to just blast through the resistance to take out all these shorts before possibly reversing afterwards.
2/5
2/5
So yes, hedging makes sense if you want to play it safe in my opinion but be aware that price may extend a lot longer than you initially anticipate.
Mainly due to a big short squeeze which could be sustained for a while if people keep trying to short.
3/5
Mainly due to a big short squeeze which could be sustained for a while if people keep trying to short.
3/5
🔹What is short heding?
Short hedging is where you go short for the same amount as your spot holdings. This way the short profits equal to the spot losses which makes your net profit 0 whatever price does.
Probably a bad explaination but it's the best I can do.
4/5
Short hedging is where you go short for the same amount as your spot holdings. This way the short profits equal to the spot losses which makes your net profit 0 whatever price does.
Probably a bad explaination but it's the best I can do.
4/5
This is essentially the same as selling into USDT but often easier when having several alts which may also be stored away in a cold storage or whatever.
I check fundings on $BTC and other coins on: bybt.com/FundingRate
5/5
I check fundings on $BTC and other coins on: bybt.com/FundingRate
5/5
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