Market data show that professional traders are accumulating bitcoins at a very low price. Meanwhile, small traders are looking for Altcoins.
to the the report The Bitcoin Telegraph, the price of Bitcoin, has been around for 16 days trying to maintain its $ 55,000 support. More precisely, (April 28) and at the same time with the liquidation of the $ 5 billion purchase agreement, Bitcoin seeks to maintain this support. Non-maturity futures rates show that price correction after reaching a high of $ 64,900 had a devastating effect on market sentiment.
Despite the recent weak performance of Bitcoin and the 6.5% drop yesterday, professional traders are looking to buy on the floor. The ratio of buy-to-sell contracts of OKEx exchange and Bitfinex margin markets also confirms this data. As these traders increase their purchasing power, small traders operate quietly; This is also evident in the neutral funding rate on futures contract platforms.
As you can see in the chart above, in recent weeks, the 8-hour contract-free financing rate has fallen below 0.08 percent. For contracts that expire at the end of the month, the price is very different from the price of instantaneous platforms. This indicates an imbalance between buying and selling levers.
This discrepancy stems from the fact that retail traders prefer non-maturity futures contracts, while the cost of such contracts varies depending on changes in the funding rate.
Taking into account the eight-hour budget rate, we will see a budget rate of 1% per week, which indicates that the balance sheet is slightly towards the purchase contracts. This is much less than the 0.1 percent and high rates we saw last month. These data show that small traders are still less interested in buying positions, despite the two-day fall of 9% in the price of Bitcoin.
The Long Index, on the other hand, shows the shorts of professional traders in the last 30 days, indicating that arbitrage tables and whales are buying. This index is calculated by analyzing the accumulation situations in the instant price, futures and non-maturity contracts. Using this index, we can say what kind of approach to professional traders towards the market.
As we can see in the chart above, the long rate on the short-term futures contract on the OKEx platform is about 94% heavier towards long-term futures. Traders started buying yesterday after the price of Bitcoin fell below 55,000. Importantly, these statistics show that traders are now more confident than when the price of Bitcoin peaked at $ 64,900.
Of course, it should not be forgotten that in order to confirm these predictions, marginal markets must also be examined; At Bit Phoenix, for example, there is something like $ 1.8 billion in leverage.
Bitcoin Phoenix statistics show that the Bitcoin margin trading market has grown significantly, and long positions are about 50 times more than borrowed funds for short positions. The current data is unprecedented in the history of this exchange. OKEx futures market statistics also confirm this information.
There is no doubt that despite yesterday’s price drop, professional traders have a completely upward approach to the market. At the same time, small traders are more inclined to operate in the Altcoin market.
Currently, 18 of the top 50 pennies on the market have recorded a profit of about 45% in the past month.