The latest findings by Santiment, published in Cointelegraph Consulting’s biweekly newsletter, indicated that with both short-term and long-term Bitcoin holders in a position of 15% and 63% profit, the likelihood of profit-taking became high. To make matters more ominous, the funding rate on Bitcoin’s derivatives market was at a three-month high on Bitmex, Kraken and Binance. The funding rate is the price paid by one side of perpetual contracts to the other, helping to keep the price of contracts trading close to the underlying reference price. A large funding rate is a sign that there is a large increase in long predictions on the exchanges, which can accelerate the frequency of mass-liquidations in the event of a price correction.
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Source: Cryptocurrency - investing.com
