Bitcoin: Derivatives data gives hope

Despite the recent decline in Bitcoin’s price, derivatives market indicators suggest that bullish investors remain active and confident. This in-depth analysis highlights the conflicting signals between market sentiment and current technical trends.

Derivatives market shows continued optimism

Recent data from Coinglass shows sustained activity in the Bitcoin derivatives market. Trading volume jumped 46.20% in 24 hours, reaching $87.90 billion. This significant increase indicates that traders remain engaged despite the volatility.

Although open interest decreased by 6.66% to $29.61 billion, this decline could be explained by profit-taking rather than a general pessimismThe overall long/short ratio of 0.9168 suggests a relative balance between long and short positions.

Major exchanges are showing significantly higher long/short ratios. Binance and OKX are showing ratios of 3.2176 and 2.88 respectively, indicating a strong bullish sentiment among the most active traders.

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Technical indicators point to a bearish trend

Despite the optimism in the derivatives market, technical analysis paints a gloomier picture. Bitcoin is trading under the Ichimoku cloud, a classic bearish trend signal. The On-Balance Volume (OBV) indicator is showing 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.

The recent fluctuations have caused massive liquidations, especially on the long side. In one hour, $49.76 million was liquidated, of which $49.44 million was long. 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 advised in the face of persistent bearish signals.

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