Glassnode: Bitcoin Rally Attracts Short Bets, Risk of Short Squeeze Brewing

April 25 news, Glassnode reports that as Bitcoin prices rebound, market leverage is rising, increasing the chances of volatility exacerbated by liquidations and stop-losses. Despite the rise in open contract positions, the average funding rate has dropped to -0.023%, indicating a market tilt towards short positions. Bitcoin traders appear to be shorting this rally, and if the bullish momentum continues, it could lead to a short squeeze situation. The 7-day moving average of long funding rate premiums has decreased and continues to decline. This suggests a reduced demand for Bitcoin long exposure, further reinforcing the view that the current perpetual contract holdings are predominantly short.