How to Use Borrowing to Read Smart Money in Crypto
This is second part (not last one :) ) first is here
Borrowing data gives one of the cleanest insights into market positioning.
But here’s the key:
👉 We don’t trade borrowing.
👉 We trade its market realization.
🔍 Step 1: NEW Tokens
A token marked as NEW signals:
• Fresh margin activity
• Position buildup
• Potential upcoming move
📌 Example: ACH → early accumulation of positions
📊 Step 2: Price Reaction
Open 1m–15m chart:
Look for:
• Aggressive candles
• Volume spikes
• Directional pressure
📌 Example:
Short pressure → ~0.5% move in 15 minutes
📈 Step 3: Market Confirmation
Use CoinGlass:
• CVD
• Open Interest
• Funding
This reveals:
• Absorption zones
• Reversal points
• Smart money behavior
🧠 Step 4: Core Logic
Borrowing is often used for shorts (especially altcoins).
BUT:
👉 If absorbed → price goes LONG
📊 CHNG Interpretation
• CHNG > 1 → buildup → move forming
• CHNG ↓ → closing positions → reversal
• Price ↑ + CHNG > 1 → SHORT
• Price ↑ + CHNG negative → profit taking
🎯 Scenarios
🔴 SHORT → Price ↑ + CHNG > 1
🟡 EXIT → Price ↑ + CHNG ↓
🟢 LONG → Price ↓ + CHNG ↑
⚪ WEAK → Price ↑ + CHNG ↓
💡 Final Idea
Track:
• Borrowing
• CHNG
• Price
That’s your edge.
Absolutely free
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