Bitcoin derivatives data reflects traders’ mixed feelings below $17,000
Derivatives data shows increased demand for margin longs, contradicting traders’ perception that further downside is in store for Bitcoin. Bitcoin (BTC) lost 25.4% in 48 hours, bottoming at $15,590 on Nov. 9 as investors rushed to exit positions after the second-largest cryptocurrency exchange, FTX, halted withdrawals. More importantly, the sub-$17,000 levels were last seen almost two years prior, and the fear of contagion became evident.The move liquidated $285 million worth of leverage long (bull) positions, leading some traders to predict a potential downside of $13,800.What an exciting....
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Analyzing bitcoin derivatives data makes it clear that market participants are cautious in this period of uncertainty.
Traders wound up their long Bitcoin derivatives contracts ahead of the October price rally, ignoring solid on-chain fundamentals. Bitcoin (BTC) derivatives traders on the Chicago Mercantile Exchange (CME) missed out on incredible profits as BTC’s spot price smashed through $55,000 this week.Retail investors reduced their long exposure across the Bitcoin futures and options markets in late September, according to data shared by Ecoinometrics. The amount of open short positions also climbed, indicating that derivative traders anticipated Bitcoin’s price to drop, as shown in the chart....
Ethereum price appears en-route to a new all-time high, but data shows retail and pro investors are slightly skeptical about the current rally. Today Ether (ETH) price briefly touched $4,760, exciting investors and reminding the world that the altcoin is a mere 2.2% below the $4,870 all-time high reached 20 days ago. While the spot price action might be intriguing, let’s see what’s happening in Ether’s derivatives markets.Ether ETH/USD price at Bitstamp. Source: TradingViewWhile it is possible to draw a descending channel that shows support at $3,960, today's 5.4% positive move seems....
ETH’s futures markets are slightly bearish, but options traders appear to be interpreting the rally to $3,200 as a bottoming signal. Ether (ETH) has been an emotional rollercoaster over the past three months primarily because its price rallied twice. First, it peaked at $4,870 on Nov. 10 and at $4,780 on Dec. 1. However, the double top was quickly followed by a harsh rejection, which led to $490 million in long futures contract liquidations in 48 hours.Once again, hope was instilled on Dec. 8 after Ether commenced to rally 28.5% in four days to retest the $4,400 support. Soon after, the....
The ETH futures premium turned bearish and the network's TVL dropped 22% from its peak, but how is this impacting pro traders’ sentiment? Ether (ETH) lost the critical $3,000 psychological support level on April 11 after a 16% weekly negative performance. Bulls were definitively caught by surprise as $104 million in leveraged long futures got liquidated on April 11. Ether's downturn also followed a decline in the total value locked (TVL) in Ethereum smart contracts. Ethereum network TVL in ETH. Source: Defi LlamaThe metric peaked at 40.6 million Ether on Jan. 27, and has since dropped by....