Which one is more risky, short or long in Bitcoin?

In general, in the Bitcoin futures market, the risk of short selling is greater than the risk of long selling. Risks of short selling include: risk of loss due to price rise, high margin requirement, poor liquidity, high market volatility, risk of long selling include: risk of loss caused by price drop, risk of capital cost, liquidation risk

Comparison of the risks of short and long Bitcoin

In the Bitcoin futures market, there are certain risks in both short and long positions. But overall, shorting Bitcoin tends to be riskier.

Risk of short selling

• Risk of rising price: When shorting, as the price of Bitcoin rises, the risk of loss also increases. If prices rise significantly, short sellers may be at risk of being forced to liquidate their positions and suffer significant losses.
• High margin requirements: Shorting Bitcoin requires a higher margin, which increases the cost of capital occupation and amplifies potential losses.
• Poor Liquidity: Bitcoin short trades are relatively illiquid, which means it can be difficult to close a position when the price fluctuates significantly.
• Extreme Volatility: Bitcoin prices fluctuate wildly, especially in short markets, which can lead to significant losses for short sellers.

Risk of going long

• Risk of falling price: When going long, as the price of Bitcoin falls, the risk of loss will also increase. In a bear market, Bitcoin prices can pull back sharply, causing longs to incur losses.
• Capital costs: Being long on Bitcoin requires paying funding fees. As the holding time increases, the funding costs will also increase.
• Risk of Liquidation: If the price of Bitcoin drops sharply, it may cause long positions to liquidate.
• Better Liquidity: Bitcoin long trades have better liquidity, which makes closing positions relatively easy.

It should be noted that the risk of shorting and longing Bitcoin also depends on factors such as the trader’s leverage, position management, and market sentiment. High leverage and overweight positions can magnify risk, while careful trading strategies and close attention to market sentiment can reduce risk.

Bitcoin Price Rise: Recent Movements and Outlook

As of 18:00 on July 17, 2024, Bitcoin (BTC) is trading at $65,306, with a 24-hour trading volume of $383 billion. Bitcoin prices rose 3.2% over the past 24 hours.

Factors Behind Price Movements

The recent rise in Bitcoin price has been attributed to multiple factors, including:

• Increased Institutional Investment: Large institutional investors continue to include Bitcoin in their portfolios, which shows a growing interest in digital Trust in assets is growing day by day.
• Positive Technical Indicators: Bitcoin’s price chart is showing bullish signals such as the formation of higher highs and higher lows.

Future Price Trend Analysis

Based on current price trends and fundamental indicators, the price of Bitcoin is expected to continue to rise in the short term. However, it is important to note that the cryptocurrency market is highly volatile and price movements can change unexpectedly.

Recommended Actions

For investors looking to take advantage of volatile markets, consider the following advice:

• Invest carefully and only invest money you are willing to lose.
• Do your own research and learn about the Bitcoin market.
• Manage risk carefully and place stop loss orders.

Short-term trend prediction

Without any surprises, Bitcoin price is expected to continue rising in the short term and may test higher levels.

Indicators

• Price: $65,306
• 24-hour trading volume: $383 billion
• Market cap: $1.28 trillion
• Circulation: 19.72 million Bitcoins
• Maximum supply: 21 million Bitcoins
• Total supply: 19.72 million Bitcoins

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