Bitcoin has surged past $57,000, yet data indicates that many investors on derivatives exchanges like Binance and BitMEX continue to short it. According to analytics firm Santiment, the funding rate remains negative on these platforms, indicating a bearish sentiment despite the price increase.
The funding rate tracks the fee derivatives contract traders pay each other. A positive rate implies bullish sentiment, while a negative rate suggests a bearish sentiment.
Recent data shows that short positions reached large negative levels around Bitcoin's price bottom. However, these short positions didn't work out, as Bitcoin's price rebounded and continued to rise. Liquidations from these shorts likely helped fuel the recovery.
Over the past 24 hours, Bitcoin's rise past $57,000 caused almost $123 million in liquidations, with $88 million involving short positions. Despite this, the funding rate remains negative, suggesting that bearish sentiment persists.
If short positions are liquidated again, it could further propel Bitcoin's price upwards. The future of Bitcoin's price direction against the prevalent bearish sentiment remains to be seen.
