Bitcoin: Derivatives Data Rekindles Hope

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

The derivatives market shows persistent optimism

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

Although open interest decreased by 6.66%, settling at $29.61 billion, this decline could be explained by profit-taking rather than widespread pessimism. The global long/short ratio of 0.9168 suggests a relative balance between long and short positions.

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

Technical indicators point to a bearish trend

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

Recent fluctuations have caused massive liquidations, especially on the long side. In one hour, $49.76 million was liquidated, including $49.44 million in longs. 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 warranted in light of persistent bearish signals.