Cryptocurrency prices have dipped to the bottom making it a perfect opportunity to “Buy-the-Dip”. However, traders seem to be shorting more than buying crypto during these small price drops.
Altcoins are witnessing more short-selling or shorting than Bitcoin. In the last 24 hours, Bitcoin (BTC) saw about 51% short positions across exchanges, whereas altcoins recorded on average 55% shorting.
Short Selling Rises Despite “Buy-the-Dip” Sentiments
ອີງຕາມເວທີການວິເຄາະລະບົບຕ່ອງໂສ້ ສັນຕິພາບ, data on Bitcoin and altcoins average funding rate vs. Bitcoin price reveals that traders continue to short altcoins at every small dip. Whereas, Bitcoin’s long and short ratio remains stagnant as prices fluctuate in a range.
“As prices gradually fell on Sunday, traders have shown that though they may proclaim to be buyingthedip, ພວກເຂົາແມ່ນ ສັ້ນ ເພີ່ມເຕີມກ່ຽວກັບ mini drops ເຫຼົ່ານີ້. ຫນ້າສົນໃຈ, ນີ້ພຽງແຕ່ນໍາໃຊ້ກັບ altcoins ໃນປັດຈຸບັນ, ສະແດງໃຫ້ເຫັນວ່າ Bitcoin is being flocked to as the safe haven.”
ເປັນຕໍ່ ຂໍ້ມູນ by Coinglass, traders have continued short-selling of altcoins on Monday. Ethereum (ETH) saw 56% shorts amid a liquidation of $25 million in the last 24 hours. Meanwhile, Solana (SOL), XRP, Cardano (ADA), Polkadot (DOT), and BNB recorded 55%, 59%, 63%, 67%, 53% shorts, respectively.
Interestingly, Tether (USDT) has seen an 85% shorting across exchanges in the last 24 hours. Some short sellers believe that most of Tether’s commercial paper holdings are backed by Chinese property dealers. USDT has seen massive redemptions since the last month, which caused its market cap to fall near $66 billion.
Moreover, hedge funds are increasingly ສັ້ນ U.S. dollar-pegged stablecoin Tether (USDT) amid a weak market outlook.
Altcoin Liquidation Rises Amid Short Selling
While traders continue to short altcoins, liquidations are also rising. Altcoins that were trading strongly in the morning are now in red. Ethereum (ETH) price has fallen nearly 4% in the last 24 hours, as liquidation rises in the last few hours. Other altcoins have also lost gains and are now falling.
ເນື້ອໃນທີ່ ນຳ ສະ ເໜີ ອາດຈະປະກອບມີຄວາມຄິດເຫັນສ່ວນຕົວຂອງຜູ້ຂຽນແລະຂຶ້ນກັບສະພາບຂອງຕະຫຼາດ. ເຮັດການຄົ້ນຄວ້າຕະຫລາດຂອງທ່ານກ່ອນທີ່ຈະລົງທືນໃນ cryptocurrencies. ຜູ້ຂຽນຫລືສິ່ງພິມບໍ່ມີຄວາມຮັບຜິດຊອບຕໍ່ການສູນເສຍທາງດ້ານການເງິນສ່ວນຕົວຂອງທ່ານ.
Source: https://coingape.com/prices-are-falling-despite-buy-the-dip-sentiment-data-reveals-why/