According to Robbie Liu, a recent downward correction in the Bitcoin market did little to offset the long-term bullish bias.
The OKEx investment analyst listed a series of trade data metrics that showed the cryptocurrency had limited downside risk. He noted that last week’s “musk rally” of more than $ 6,000 had helped bullish sentiment recover and that closing above the high of the spike could cause BTC / USD to sell $ 40,000. Challenge dollars – or even win back $ 42,000.
“The long / short ratio had small ups and downs during the week, hovering in a range of 1.07 to 1.53. Although prices continued to rise, the ratio did not return to last Friday’s high of 1.80 “Liu said, adding that the ratio is now near 1.20.
In retrospect, the long / short ratio compares the total number of users entering long positions to those entering short positions. When the ratio is low, it means that more traders are short, betting in favor of a fall in prices.
Bitcoin long / short ratio. Source: OKExBitcoin Long / Short Ratio. Source: OKEx
At 1.20, the long / short ratio is bullish enough, suggesting that Bitcoin could see further price gains in the coming sessions.
Bitcoin base difference
Other measured values show Bitcoin to the north. For example, the quarterly futures premium, which measures the base difference between the Bitcoin futures contract rates and the spot prices, is currently 4.8 percent, or $ 1,800. This shows that the market is regaining confidence in an upward move.
Bitcoin Quarterly Futures Premium. Source: OKExBitcoin Quarterly Futures Premium. Source: OKEx
“Besides,” added. Mr. Liu: “The perpetual swap funding rate, which follows the same trend as the quarterly futures premium, continued to rise during the week. It hit a high of 0.19% Thursday morning before the price fell back for a short-term correction. “
“The current funding rate is 0.06%, which is normal and leaves room for Bitcoin to continue on its upward trajectory,” he added.
This week, Bitcoin’s open interest and volume climbed to $ 2.1 billion at the same time after staying lower in the previous session. The jump came around the same time that Bitcoin confirmed a double bottom scenario at the $ 34,500 level.
“This price level will be an important support in the future,” he added. Mr. Liu.