In recent days, there has been a noteworthy development on major Bitcoin exchanges. The activity of long-term buying (going “Long”) has suddenly surged. It seems that experienced investors in the Bitcoin market are showing confidence in a future price increase.
According to aggregated data from derivative exchanges such as BitMex, Bybit, Huobi, Deribit, OKX, and Binance, we can observe unusual figures emerging since the beginning of August. To put it simply, there’s a metric called the “Taker Buy Sell Ratio.” When this ratio is positive (shown in green), it signifies that participants are buying more than selling. The chart depicts several days recently with high buying volumes.
Experienced investors in the Bitcoin space started ramping up their long-term purchases when the Bitcoin price dipped to around $29,000. The intriguing part is that this surge in buying volume is quite rare and hasn’t been seen since the start of the year until now. Moreover, data from Coinglass indicates that the open interest in Bitcoin futures contracts (measured in USD) has surpassed $15 billion – a remarkable high not seen since June 2022.
Especially among this surge of derivative data, figures from the BitMex exchange stand out prominently.
In the realm of cryptocurrency, particularly on exchanges like BitMex, major investors often take bold steps when betting on price increases. They tend to profit significantly from long-term buying (going “Long”) as long and medium-term bullish cycles start. Their latest move involves a substantial volume, almost comparable to what happened in May 2020 – a time just before Bitcoin experienced its largest historical price surge.
Despite these confident actions of major investors, many experts predict that the Bitcoin price might decline. They base their predictions on the emergence of five rare bearish divergence signals. If this plays out, the market could witness a significant sell-off period, possibly unprecedented in the scale of major investors.
However, the interesting twist is that instead of using actual money to buy Bitcoin on the spot market, these major investors are turning their focus to placing buy orders in the derivative market. Data from CryptoQuant continues to show a positive “Funding Rate,” indicating that a larger number of participants are betting on a price increase (going “Long”) compared to those betting on a decrease (going “Short”).
At the time of writing, the Bitcoin price is hovering around $29,390 with slight fluctuations over the past 24 hours. The cryptocurrency market is still in a phase of monitoring and forecasting, and the involvement of major investors in the derivative market adds a layer of excitement to the mix.