How to short Bitcoin: hot topics and operation guides on the Internet in the past 10 days
Recently, the price of Bitcoin has fluctuated violently, and the market's short-selling sentiment has increased. This article will combine the hot content of the entire network in the past 10 days to provide you with a detailed analysis of the principles, methods and risks of Bitcoin short selling, and provide structured data reference.
1. Review of recent hot spots in the Bitcoin market
| Date | hot events | price impact |
|---|---|---|
| 2023-11-01 | Fed keeps interest rates unchanged | BTC rises 3% |
| 2023-11-05 | Binance CEO pleads guilty and resigns | BTC plunges 7% |
| 2023-11-08 | U.S. SEC delays ETF resolution | BTC fell 5% |
2. Basic principles of Bitcoin short selling
Short selling refers to the operation of borrowing an asset to sell it and buying it back at a lower price to make a profit when the price of an asset is expected to fall. Bitcoin short selling is mainly achieved in the following three ways:
| Short selling method | Operation process | Applicable platforms |
|---|---|---|
| futures contract | Open a short contract and close the position upon expiry to settle the difference. | OKX, Binance, Bybit |
| Margin trading | Borrow the currency and sell it, then buy it back at a low price and pay it back | Huobi, Gate.io |
| options trading | Buy put options to gain the right to fall | Deribit、OKX |
3. Comparison of short selling rates on mainstream exchanges
| exchange | Futures Leverage | Funding rate (7-day average) | Minimum margin |
|---|---|---|---|
| Binance | 125x | 0.01% | 0.001BTC |
| OKX | 100x | 0.015% | 0.0005BTC |
| Bybit | 100x | 0.02% | 0.001BTC |
4. Specific steps for short selling operations (taking Binance as an example)
1.Open a contract account: Complete the identity verification and transfer the deposit
2.Select contract type: It is recommended to use U-based contract (BTC/USDT)
3.Set leverage: Novices recommend 10-20 times, those with high risk tolerance can choose higher
4.Place a limit order: Enter short price and quantity
5.Set take profit and stop loss: It is recommended that the stop loss be set to 3-5% of the opening price
5. Short selling risk warning
| Risk type | Specific performance | Precautions |
|---|---|---|
| Risk of liquidation | Reverse price fluctuations cause margin to return to zero | Control leverage multiples and add margin |
| Risk of shortfall | Loss exceeds margin in extreme market conditions | Choose a platform with risk reserves |
| Funding rate risk | Long-term positions require funding fees | Pay attention to rate changes and close positions promptly |
6. Analysis of short selling signals in the current market
According to Glassnode’s latest on-chain data:
| indicator | numerical value | Signal interpretation |
|---|---|---|
| Exchange net inflow | +12,000 BTC/week | Selling pressure increases |
| open interest | $1.85 billion | The long and short game is fierce |
| panic greed index | 35 (panic) | Market sentiment is bearish |
7. Advice from professional traders
1.Combined with technical indicators: Consider shorting when RSI>70, MACD dead cross confirms the signal
2.Pay attention to key points: $34,500 is an important resistance level. If the breakthrough fails, short orders can be placed.
3.Control position ratio: A single short sale shall not exceed 5% of the total funds.
4.Track market sentiment: Be wary of reversal risks when search volume for "Bitcoin short" surges
Bitcoin short selling is a high-risk, high-yield operation, and it is recommended that investors fully understand the mechanism before participating. The market has been greatly affected by regulatory policies recently, and special attention needs to be paid to U.S. SEC dynamics and global macroeconomic data. The data statistics in this article are as of November 10, 2023. The market is risky and investment needs to be cautious.
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