{"id":498509,"date":"2022-10-05T20:06:27","date_gmt":"2022-10-05T17:06:27","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bitcoin-derivatives-data-reflects-traders-belief-that-20k-will-become-support\/"},"modified":"2022-10-05T20:06:27","modified_gmt":"2022-10-05T17:06:27","slug":"bitcoin-derivatives-data-reflects-traders-belief-that-20k-will-become-support","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bitcoin-derivatives-data-reflects-traders-belief-that-20k-will-become-support\/","title":{"rendered":"# Bitcoin derivatives data reflects traders\u2019 belief that $20K will become support"},"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-6a2eebbc1bf2b\" 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-6a2eebbc1bf2b\" 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-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-derivatives-data-reflects-traders-belief-that-20k-will-become-support\/#%E2%80%9D_Bitcoin_derivatives_data_reflects_traders_belief_that_20K_will_become_support_%E2%80%9C\" >&#8221; Bitcoin derivatives data reflects traders\u2019 belief that $20K will become support &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-derivatives-data-reflects-traders-belief-that-20k-will-become-support\/#Margin_traders_did_not_increase_their_longs_despite_the_rally\" >Margin traders did not increase their longs despite the rally<\/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-derivatives-data-reflects-traders-belief-that-20k-will-become-support\/#Option_markets_hold_a_neutral_stance\" >Option markets hold a neutral stance<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Bitcoin_derivatives_data_reflects_traders_belief_that_20K_will_become_support_%E2%80%9C\"><\/span>&#8221; Bitcoin derivatives data reflects traders\u2019 belief that $20K will become support &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-6ebd806f>Bitcoin (BTC) showed strength on Oct. 4 and 5, posting a 5% gain on Oct. 5 and breaking through the $20,000 resistance. The move liquidated $75 million worth of leverage short (bear) positions and it led some traders to predict a potential rally to $28,000.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\"><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$BTC<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw\">#Bitcoin<\/a> <\/p>\n<p>Shared this descending channel 2 days ago.<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$BTC<\/a> has managed to break through the middle line.<br \/>Next target = Upper channel trendline =  ~21.5k.<\/p>\n<p>In case of a breakout, 28k-30k are possible. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/dyqMLdcXZ4\">pic.twitter.com\/dyqMLdcXZ4<\/a><\/p>\n<p>\u2014 \u24d7  (@el_crypto_prof) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/el_crypto_prof\/status\/1577336706235334658?ref_src=twsrc%5Etfw\">October 4, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\nAs described by\u00a0Moustache, the descending channel continues to exert its pressure, but there could be enough strength to test the upper channel trendline at $21,500. The price action coincided with improving conditions for global equity markets on Oct. 4, as the S&amp;P 500 index gained 3.1% and the tech-heavy Nasdaq Composite rallied 3.3%. <\/p>\n<p>Curiously, the sentiment improvement h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ened while the United States job openings dropped by 1.1 million in August, according to the U.S. Labor Department. The decline was the largest since April 2020 and signaled the U.S. Federal Reserve\u2019s aggressive contractive monetary policy could end sooner than expected.<\/p>\n<p>The overall bullish sentiment might have caused Bitcoin to break the $20,000 resistance, but that does not mean professional investors are comfortable at the current price levels.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Margin_traders_did_not_increase_their_longs_despite_the_rally\"><\/span>Margin traders did not increase their longs despite the rally<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Monitoring margin and options markets provide excellent insight into how professional traders are positioned. Margin trading allows investors to borrow cryptocurrency to leverage their trading position. For example, one can increase exposure by borrowing stablecoins to buy an additional Bitcoin position.<\/p>\n<p>On the other hand, Bitcoin borrowers can only short the cryptocurrency as they bet on its price declining. However, unlike futures contracts, the balance between margin longs and shorts isn\u2019t always matched.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-10\/616e11ae-c4d9-4772-959c-a1873a076b06.png\"><figcaption style=\"text-align: center;\"><em>OKX USDT\/BTC margin lending ratio. Source: OKX<\/em><\/figcaption><\/figure>\n<p>The above chart shows that OKX traders\u2019 margin lending ratio has remained relatively stable, near 12. At the same time, Bitcoin price jumped 5% since Oct. 3. Furthermore, the metric remains bullish by favoring stablecoin borrowing by a wide margin. As a result, pro traders have been holding bullish positions.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Option_markets_hold_a_neutral_stance\"><\/span>Option markets hold a neutral stance<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>To understand whether Bitcoin will be able to sustain the $20,000 support, the 25% delta skew is a telling sign whenever arbitrage desks and market makers are overcharging for upside or downside protection.<\/p>\n<p>The indicator compares similar call (buy) and put (sell) options and will turn positive when fear is prevalent because the protective put options premium is higher than risk call options.<\/p>\n<p>The skew indicator will move above 12% if traders fear a Bitcoin price crash. On the other hand, <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a>ized excitement reflects a negative 12% skew.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-10\/37075ce4-b6db-4b91-87ff-8b8bb90d2bb7.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Bitcoin 30-day options show 25% delta skew: Source: Laevitas<\/em><\/figcaption><\/figure>\n<p>As displayed above, the 25% delta skew had been above 12% since Sept. 21. It did nosedive below that threshold on Oct. 3, suggesting options traders are pricing a similar risk of unexpected pumps or dumps.<\/p>\n<p>Whenever this metric stands above 12%, it signals that traders are fearful and reflects a lack of interest in offering downside protection.<\/p>\n<p>Despite the neutral Bitcoin options indicator, the OKX margin lending rate showed whales and market makers maintaining their bullish bets after the 5% BTC price increase on Oct. 4. <\/p>\n<p>Derivatives seem to reflect trust in the $20,000 support gaining strength as investors display higher odds of the U.S. Federal Reserve easing interest rate hikes sooner than expected.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. 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The move liquidated $75 million worth of leverage short (bear) positions and it led some traders to predict a potential&#8230;<\/p>\n","protected":false},"author":1,"featured_media":498510,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTAvZWM0ZWNhMjAtZGRmOS00ZGE0LWE3YzktM2IyZDdhNWMzY2Q0LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,81209,75012,132424,70550,73785],"class_list":["post-498509","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-options","tag-derivatives","tag-okx","tag-federal-reserve","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/498509","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=498509"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/498509\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/498510"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=498509"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=498509"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=498509"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}