Investors on Binance Futures express heightened optimism as the long-short ratio hits a multi-month high.
In a surprising turn of events, the long-short ratio for Bitcoin on Binance Futures has skyrocketed to 2.86 in the past 24 hours, marking a significant surge. This ratio, a key indicator of investor sentiment, reflects a positive outlook on Bitcoin's future price trajectory. Typically, a reading of 1 is considered balanced, indicating an equal number of traders holding long and short positions.
Before the recent approval of multiple spot Bitcoin exchange-traded funds (ETFs), the long-short ratio lingered at a low of 0.86. However, following the regulatory green light, traders seized the opportunity, leading to a notable increase in the ratio. This surge can be attributed to speculative moves anticipating the cryptocurrency's appreciation in the aftermath of ETF approval.
Coinglass data aligns with The Block's insights, showcasing a predominant bullish stance among traders. According to Coinglass, the long-short ratio for Bitcoin positions on Binance Futures stands at 2.63, affirming the overall optimism in the market.
Analyzing open trades on Coinglass reveals a prevailing bullish sentiment. Approximately 42% of traders have adopted a bullish stance in the last 24 hours, while only 22% have taken a bearish position. Neutral positions make up the remaining percentage.
Contrarian traders are on high alert, observing the current market dynamics where a considerable number of traders have already taken long positions. This group speculates that the bullish momentum could be decelerating or reaching a plateau.
Contrarian trading strategies, which involve going against the crowd, come into play as traders anticipate potential exhaustion of the bullish trend. In crowded trading scenarios, characterized by a relatively high long-short ratio, liquidation risks increase, especially if Bitcoin experiences sudden price swings.
Amidst these developments, the price of Bitcoin experienced a marginal decline of over 0.3% in the last 24 hours, settling at $42,602 as of 7:50 a.m. ET, as reported by The Block's Price Page.
While the increased long-short ratio signals heightened optimism, it also introduces potential risks, especially with the possibility of exhaustion in bullish sentiment. Traders should remain vigilant in navigating these uncertain waters.
This article evaluates the performance of various elements within the crypto space during and after the crash and compares them to traditional financial markets.
JinseFinanceMt. Gox, BCH, BTC, Crypto Market, Mt. Gox Repayment: A Catalyst for Long BTC and Short BCH? Golden Finance, BCH's selling pressure will be four times that of BTC.
JinseFinanceTechnologies like artificial intelligence, robotics, energy storage, DNA sequencing and blockchain will change our world—they are her passion, even her mission.
JinseFinanceI will first introduce to you a recent article by Giovanni Santostasi, the originator of the power law model, titled “The Bitcoin Power Law Theory”, as a basis for further in-depth discussions on related topics.
JinseFinanceBitcoin's supply-in-profit ratio nears previous bull market peaks, indicating substantial unrealized gains. Analysts foresee sustained levels amidst institutional investment but caution against potential price corrections. Crypto market hits 22-month high at $2.25 trillion.
Xu LinLookonchain tweeted "A giant whale address borrowed 20 million CRV from Aave and transferred 10 million CRV to OKX.
TristanIt's hard to overstate how much FTX embedded itself into the broader world. That could drive some of the response to its collapse.
CoindeskOn-chain data shows both the Bitcoin leverage ratio and the futures open interest has spiked up recently, a sign that ...
BitcoinistOn-chain data shows Bitcoin funding rates have sunk into deep negative values, something that could pave way for a short ...
BitcoinistBTC price looks to break out of its downtrend, yet pro traders are still unwilling to add leveraged positions.
Cointelegraph