The fact that Bitcoin fell below $40,000 again upset the bulls.
Nearly $500 million of positions were liquidated as the price fell from $43500 to $39500 in the last 24 hours. 91% of the liquidated positions were in long positions.
Meanwhile, the Korean publisher Sato, who was broadcasting live, opened a position of 100 BTC with 40x leverage from 42,200, in anticipation of a rise in Bitcoin.
Upon the continuation of the decline, Sato changed the leverage ratio and started adding at the $41,000 levels.
As a result, Sato, who reached a total position of 240 BTC with 22x leverage, began to wait.
For the $10 million position, Sato invested $420,000.
Watching the price decline with an average of $41,666, Sato was liquidated at $40,023.
Funding Remains in Positive Zone
We see that the futures funding rate remains positive, while investors continue to long, thinking that the price will react at $40,000.
#Bitcoin Funding rate remains positive as it drops below $40,000. The latest situation in the 10-minute period. @glassnode pic.twitter.com/LJ9yqi7Llc
— Bitcoin System (@bitcoinsystem) April 11, 2022
There is an inverse correlation between the funding rate and the price in Bitcoin. Recently, the market maker has not increased the price without clearing all long positions, and he expects investors to surrender to the market and short positions to accumulate. In this respect, despite the decrease in the price, the longing of someone’s bottom seems to be the biggest obstacle to the rise.
Experts warn investors to stay away from leveraged trades and high leverage.
*Not Investment Advice.