{"id":331323,"date":"2021-08-27T21:35:00","date_gmt":"2021-08-27T18:35:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bitcoin-price-stages-a-comeback-as-3-indicators-reflect-btcs-strength\/"},"modified":"2021-08-27T21:35:00","modified_gmt":"2021-08-27T18:35:00","slug":"bitcoin-price-stages-a-comeback-as-3-indicators-reflect-btcs-strength","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bitcoin-price-stages-a-comeback-as-3-indicators-reflect-btcs-strength\/","title":{"rendered":"# Bitcoin price stages a comeback as 3 indicators reflect BTC\u2019s strength"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a261de2b91ef\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a261de2b91ef\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-price-stages-a-comeback-as-3-indicators-reflect-btcs-strength\/#A_bullish_trend_can_be_seen_in_futures_markets\" >A bullish trend can be seen in futures markets<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-price-stages-a-comeback-as-3-indicators-reflect-btcs-strength\/#The_top_traders_long-to-short_ratio_is_still_optimistic\" >The top traders long-to-short ratio is still optimistic<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-price-stages-a-comeback-as-3-indicators-reflect-btcs-strength\/#Options_markets_are_slightly_bullish\" >Options markets are slightly bullish<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Bitcoin price stages a comeback as 3 indicators reflect BTC\u2019s strength <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>Bitcoin (BTC) price is still 4.4% down from its Aug. 23 high at $50,500, leading some traders to question whether the local top marked the end of the recent 34-day long bull run.<\/p>\n<p>Even with the current correction, derivatives data and the maneuvers of professional investors are not flashing any bearish signals.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-08\/17238342-5b6b-41bc-8313-c3e8c2ae4750.png\"><figcaption style=\"text-align: center;\"><em>Bitcoin price in USD at Coinbase. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>On Aug. 24, prominent technical analyst John Bollinger suggested that Bitcoin price could be pushed lower in the short term. A pseudonymous market analyst called &#8216;CryptoHamster&#8217; shared a similar bearish outlook based on analyzing a technical pattern called an ascending channel.<\/p>\n<p>Bearish <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> coming from exchange regulation could have also diminished investors&#8217; interest, and this week the United Kingdom&#8217;s Financial Conduct Authority (FCA) released a supervisory notice against Binance exchange.<\/p>\n<p>According to this week&#8217;s regulatory action, the exchange was asked to take down its live advertisements and promotions on Binance&#8217;s website and <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">social media<\/a>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"A_bullish_trend_can_be_seen_in_futures_markets\"><\/span>A bullish trend can be seen in futures markets <span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>To assess whether professional traders became pessimistic, analysts should monitor the futures premium, also known as &#8216;basis.&#8217; This indicator measures the price gap between futures prices and the regular spot market.<\/p>\n<p>The one-month contract should trade with a 6% to 14% annualized premium in healthy markets because sellers demand a higher price to postpone settlement, creating a price difference.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-08\/7f87fef8-cb4e-4a3a-9411-87295323c51d.png\"><figcaption style=\"text-align: center;\"><em>Huobi 1-month futures basis. Source: Skew<\/em><\/figcaption><\/figure>\n<p>Notice how the indicator has improved from a neutral-to-bearish 4% annualized premium on Aug. 19 to a more healthy 9% level. This shows that the metric is moving in the opposite direction of the zone, which would be considered bearish.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_top_traders_long-to-short_ratio_is_still_optimistic\"><\/span>The top traders long-to-short ratio is still optimistic<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>To effectively measure how professional traders are positioned, investors should monitor the top traders&#8217; long-to-short ratio at leading crypto exchanges. This metric provides a broader view of the traders&#8217; effective net position by gathering data from multiple markets.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-08\/f1ab3ef6-6b34-41d1-a621-e288d39f91ff.png\"><figcaption style=\"text-align: center;\"><em>Top traders BTC long\/short ratio. Source: Bybt.com<\/em><\/figcaption><\/figure>\n<p>It is worth noting that exchanges gather data on top traders differently because there are multiple ways to measure a clients&#8217; net exposure. Therefore, any comparison between different providers should be made on percentage changes instead of absolute numbers.<\/p>\n<p>Both OKEx and Huobi displayed an increase in the top traders&#8217; long-to-short ratio, indicating that either they closed short positions or opened long ones, which is a bullish move. Binance was the only exception because the indicator dropped, indicating some pessimism, but the variation over the past couple of days has been insignificant.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Options_markets_are_slightly_bullish\"><\/span>Options markets are slightly bullish<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The 25% delta skew compares similar call (buy) and put (sell) options side-by-side. It will turn positive when the protective put options premium is higher than similar risk call options.<\/p>\n<p>The opposite holds when market makers are bullish, and this causes the 25% delta skew indicator to enter the negative range.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-08\/16e1296e-2407-45e4-a124-63ca7fad8f62.png\"><figcaption style=\"text-align: center;\"><em>Deribit Bitcoin options 25% delta skew. Source: laevitas.ch<\/em><\/figcaption><\/figure>\n<p>The above chart shows that there had been some bearishness ahead of July 19, but Bitcoin options markets have flipped neutral since then. Moreover, there are no signs that professional traders are growing worried about a potential price drop because the 25% skew indicator remains near zero.<\/p>\n<p>Both futures and options markets show confidence from investors despite the worrisome technical analysis and shaky regulatory scenario. <\/p>\n<p>Consequently, at least according to derivatives markets, dips are for buying.<\/p>\n<p><em>The views and opinions expressed here are solely those of the <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/noshitcoins\"><em>author<\/em><\/a><em> and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.<\/em><\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/bitcoin-price-stages-a-comeback-as-3-indicators-reflect-btc-s-strength\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Bitcoin price stages a comeback as 3 indicators reflect BTC\u2019s strength &#8221; Bitcoin (BTC) price is still 4.4% down from its Aug. 23 high at $50,500, leading some traders to question whether the local top marked the end of the recent 34-day long bull run. Even with the current correction, derivatives data and the&#8230;<\/p>\n","protected":false},"author":1,"featured_media":331324,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDgvMTU4YjIyNjgtZmMzOS00OTQzLWE5MjItMjY0NGJhNWU3YzBlLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[75014,74862,81209,74937,74863,74860,75012,75846,75591,74939,75592,73785],"class_list":["post-331323","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-binance","tag-bitcoin","tag-bitcoin-options","tag-bitcoin-price","tag-cryptocurrencies","tag-cryptocurrency-exchange","tag-derivatives","tag-futures","tag-huobi","tag-market-analysis","tag-okex","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/331323","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=331323"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/331323\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/331324"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=331323"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=331323"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=331323"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}