Bitcoin bulls fail to hold $21K, but pro traders refuse to flip bearish
2 min read
147 days have passed since Bitcoin (
Margin markets show bulls’ resilience
Traders should also analyze the margin trading markets to understand 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.
On the other hand, Bitcoin borrowers can only short the cryptocurrency because they bet on its price declining. However, unlike futures contracts, the balance between margin longs and shorts isn’t always matched.
Data shows that OKX traders’ margin lending ratio has remained relatively stable at 8 for the past week. From one side, the indicator is somewhat concerning, giving the rally from $20,050 to $21,475 on Nov. 5, which should have positively impacted the margin lending ratio. The present 8.1 level leaves enough room for sustainable leverage buying pressure when the time comes.
The metric remains bullish by favoring stablecoin borrowing by a wide margin. In a nutshell, pro traders have been holding bullish positions using stablecoin margin lending.
The futures and margin metrics suggest that Bitcoin’s failure to hold the $21,000 support was insufficient in instilling panic in pro traders.The data also shows a modest degree of apathy because the recent 7% rally toward $21,500 was not accompanied by higher demand for leverage longs.
Bears continue to exert their strength even as the elusive $25,000 daily close becomes even more distant. Until macroeconomic conditions and political uncertainty dominate the headlines, bulls are less likely to have high hopes of a more sustainable rally.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
