GugaOnChain
Liquidations reveal the fragility of bets against Bitcoin in low volatility
With BTC quoted at US$72,403.83 (24h%: +1.75%), the market finds itself facing a scenario of massive accumulation in the over-the-counter (OTC) market and an imminent risk of a supply shock. As a main strategy, the investor's focus at this moment is to completely step away from the short-term price noise and monitor the validation of scarcity and the breaking point of derivatives. DERIVATIVES The spot market is like the surface of an iceberg: its calm, especially in periods of low volatility, as observed at this moment, is merely apparent. Derivatives occupy the submerged and agitated part. It is there that the vital signs of momentum emerge. Tracking them is indispensable, acting as a radar for hidden pressures that anticipate liquidations and trend reversals. SHORT SQUEEZE Deluded by the lethargy of the spot market, retail bet on the fall. With the indicators Bitcoin: Funding Rates – All Exchanges (-0.009%) and Bitcoin: Funding Rates – Binance (-0.007%) being negative, what is exposed is the fear of the herd and the excess of leverage in short positions, amid the news about the war in the Middle East. However, our highlighted indicator, Bitcoin: Long & Short Liquidations (USD) – Binance, proves that reality is brutal and reveals who bled the most in the last 24 hours. There were US$5.25 million in annihilated shorts against US$2.01 million in longs — a significant result for a moment of low volatility, even more considering that it occurred in just one exchange. CONCLUSION With the spot supply scarce, any slight upward movement pulls the trigger on liquidations, feeding a Short Squeeze. Looking only at the surface at this moment is accepting the shipwreck.