BTCBitcoinBullishBitcoin

1/12/2022 on

This is what accumulation looks like.

Since Mid-December last year markets tend to bore investors to death with a sideways only price action. But the same thing that many fail to realize is that *SOME* entities slowly accumulating and building up positions since. While funding is still relatively neutral (green) open interest is slowly building on both occasions (blue chart). We can confirm our deduction via the estimated leverage ratio being its ATH levels on the yellow chart and rising ever since. Just to reiterate: this is all WHILE #Bitcoin price is either dropping or in a sideways action (orange colored top chart on both occasions). This is what accumulation looks like.  

BTCBitcoinNeutralBitcoin

10/18/2021 on

Discrepancies in Bitcoin markets.

Despite increasing more than %5 in the 24 hours, Bitcoin gave half of its earnings back. However Futures side tells us a different story from the Spot demand. When we look at Futures Open Interest, we see a pattern similar to Bitcoin price movement with %5 increasing OI and giving half back in 24 hours. What is interesting this time is that despite all this happening, the Perpetual Futures Funding Rates are on the positive side and constantly increasing with no sign of slowing down.  

BTCBitcoinBullishBitcoin

10/7/2021 on

Room to grow

Considering increased Open Interest on the Bitcoin market despite the fact that funding rates stay relatively flat indicates that we still have room to grow during these price actions. Of course we need to keep an eye on the options contracts' expiry date but given the fact that we've just entered October and Q4 just yet, it looks like we are in it for a good run.  

BTCBitcoinNeutralBitcoin

9/9/2021 on

Who lost, who is in the green?

Despite the fall, overall market sentiment for Long Term Holders remain intact for now. Due to price drop we saw overall SOPR for Bitcoin network have been reset (Blue). On the other hand when we look deeper into who lost, we see a slight drop into the negative area for the Short Term Holders (Red) cohort. This being neutralized by positive LTH-SOPR (Green), we can clearly see the percent of UTXOs that are at loss (>~18) (Purple) belong to Short Term Holders.  

BTCBitcoinNeutralBitcoin

9/8/2021 on

What happened?

On September 7th there were cascading long liquidations that pushed the price of Bitcoin more than %8. Estimated leverage ratio dropped from 0.18 to 0.14 and at that time significant amount of Open Interest (around $3.25B) cleared off from the market. Going forward, we definitely need to keep an eye on these metrics (OI+Lev Ratio+Unrealized Profit/Loss) before making a decision.