9h04 ▪
3
min of reading ▪ by
Despite the recent decline in Bitcoin’s price, derivative market indicators suggest that optimistic investors remain active and confident. This in-depth analysis highlights the conflicting signals between market sentiment and current technical trends.
The derivatives market shows persistent optimism
Recent data from Coinglass shows sustained activity in the Bitcoin derivatives market. Trading volume jumped by 46.20% in 24 hours, reaching $87.90 billion. This significant increase indicates that traders remain engaged despite volatility.
Although open interest decreased by 6.66%, settling at $29.61 billion, this decline could be explained by profit-taking rather than widespread pessimism. The global long/short ratio of 0.9168 suggests a relative balance between long and short positions.
Major exchanges show significantly higher long/short ratios. Binance and OKX have ratios of 3.2176 and 2.88 respectively, indicating a strong bullish sentiment among the most active traders.
Technical indicators point to a bearish trend
Despite the optimism in the derivatives market, technical analysis paints a bleaker picture. Bitcoin is trading below the Ichimoku cloud, a classic signal of a bearish trend. The On-Balance Volume (OBV) indicator shows a negative value of -110,131K, while the Chaikin Money Flow (CMF) is at -0.25.
The Average Directional Index (ADX) at 35.94 indicates a strong, unfortunately bearish, trend. These signals suggest persistent selling pressure in the short term, with critical support levels around $56,000 and $55,000.
Recent fluctuations have caused massive liquidations, especially on the long side. In one hour, $49.76 million was liquidated, including $49.44 million in longs. Over 12 hours, the total reached $104.67 million, mostly long positions ($78.58 million).
The divergence between the derivatives market and technical indicators illustrates the current complexity of the Bitcoin market. Although bulls remain active, caution is warranted in light of persistent bearish signals.
Maximize your Cointribune experience with our ‘Read to Earn’ program! Earn points for each article you read and gain access to exclusive rewards. Sign up now and start accruing benefits.
Click here to join ‘Read to Earn’ and turn your passion for crypto into rewards!
Passionné par le Bitcoin, j’aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermement que Bitcoin est l’outil qui peut rendre cela possible.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
