Risk appetite is increasing in Bitcoin, the probability of volality is increasing: the analysis company warned against the possible movement!

Crypto para Analysis firm Glassnode, in his latest report Bitcoin (BTC) offered remarkable data on the market. According to the company’s analysis, the risk appetite of investors increases, while the probability of volatility in the market is strengthened.

According to Glassnode data, open positions in futures markets have recently increased. With a 15.6 %rise since the beginning of March, a total of 281 thousand BTC open positions have accumulated. This shows that investors are starting to use more leverage and price movements may become more sudden. In particular, the possibility of sudden price changes to liquidate investors or trigger orders to stop damage is increasing.

However, the average funding rate decreases to –0,023 %and shows that short positions are opened in the market. The funding rate can be defined as an interest rate paid to keep the price difference in the spot market with term transaction contracts. Negative funding implies that more investors take positions that Bitcoin will fall.

According to the analysis company, this may prepare the ground for a Short Squeeze scenario that these investors may have to close their positions if the rise momentum continues.

In addition, the average of the 7 -day average of the premiums paid for long positions fell to 88 thousand dollars per hour and this tendency continues. This reveals that investors’ interest in positions that Bitcoin will rise is reduced, and the general trend of the market is currently weighted.

*It is not an investment advice.