The overwhelming bullish sentiment is proving costly again


According to data from over 1000 crypto social media channels, the average amount is feeling adjusted towards Bitcoin from slightly bullish to mostly bullish or similarThe days leading up to the dramatic pullback on Thursday are a reflection of the levels previously observed during the May and August price caps respectively.

The latest findings from Santiment, published in Cointelegraph Consulting’s bi-weekly newsletter, showed that both short-term and long-term Bitcoin holders with a position of + 15% and + 63% profit became more likely to profit-taking. To make matters more menacing, the refinancing rate in the Bitcoin derivatives market has been at a three-month high with Bitmex, Kraken and Binance. The funding rate is the price that one side of perpetual contracts pays the other, thereby keeping the price of contracts close to the underlying reference price. A high refinancing rate is a sign that long forecasts on the stock exchanges are increasing sharply, which can accelerate the frequency of mass liquidations in the event of a price correction.

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