bitcoinThe forcing of $22,000 levels again brought up the questions of whether the trend is returning.
According to some analysts, these rises are just a relief rally, while others think that Bitcoin is at the bottom.
We have mentioned in our previous analyzes that many indicators in Bitcoin give the bottom signal.
Popular analyst Will Clemente shared the indicators that can be used to signal a turn in Bitcoin.
According to Clemente, these three conditions will need to be met for the turn signal to arrive. The analyst also shared the latest situation in these indicators with a graphic.
Rising Open Position
The analyst thinks that there should be an increase in the number of open positions first.
Open Interest data that can be tracked is used to measure investors’ interest in futures markets. The rise of Open Interest It indicates that there is a demand for risk and that traders want to support their positions with leverage. These leveraged transactions are thought to strengthen the trend.
Negative Funding Rate
This data, which we share on Twitter from time to time, can be quite decisive about the direction of the market.
Depending on the density of short or long positions in leveraged transactions, one party pays the other a fee, we call it the funding rate.
according to Clemente The ideal scenario in the funding rate is the scenario where the funding rate increases in the negative territory as the price rises.
This may indicate that both small investors concentrate on short positions and large investors hedge their spot purchases with leveraged reverse trading.
Negative funding is a positive data for the rise.
Forward-Spot Price Spread
It is rare for the spot market price to exceed the futures price and is indicative of high demand. According to the analyst, this has happened in some exchanges such as FTX.
*Not Investment Advice.