Professional investors increased long Bitcoin positions

Bitcoin (BTC) price has fluctuated between $ 57,000 and $ 59,500 in the past few days. However, traders in major stock markets continue to increase their long positions.

BTC / USD pair on the Coinbase exchange. Source: TradingView

After reaching an all-time high of $ 61,750 on March 13, Bitcoin is trying to find new support levels. While the $ 54,000 level initially served as a support for BTC, purchases now seem to have increased around $ 57,000.

While the optimism of professional traders (as measured by the long and short term risks and premiums of futures contracts) is declining, open positions appear to be increasing, and this is a bullish indicator.

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The biggest traders increased their long positions

The long / short indicator of the best traders; It is calculated using consolidated positions, including spot, margin, permanent and futures contracts. This data collects data from multiple markets, giving an effective view of professional traders’ net position.

Long / short ratio in leading exchanges. Source: Bybt


OKEx traders increased their purchases during the March 15 decline, while turning to record long products in the past two weeks.

Huobi’s leading traders followed a similar move, with their rate rising from 0.80 to 0.90.

Finally, traders at Binance cut their long positions as the BTC price dropped on March 15th, but have since maintained 1.21 percent, bringing long-term products to 21 percent.

Ek okuma: What are short and long positions?

Overall, the long / short positions of the top traders increased from 1.03 observed on January 14 to the current 1.15 ratio. Therefore, even the $ 500 million purge on 15 March does not overshadow whales’ long positions.

Futures premium has increased in the last few days

To assess whether professional traders are optimistic, the futures premium is monitored. This indicator measures the price difference between futures prices and the normal spot market.

The price difference occurs because the sellers demand a higher price to postpone the settlement. Quarterly futures are typically traded at an annual premium of 6 to 20 percent.

3-month futures premium on the OKEx exchange. Source: Skew

The indicator experienced a 20 percent drop on March 17, just before the BTC price rose from $ 55,500 to $ 58,000. Since then, the premium has risen to 25 percent, suggesting that professional traders have increased net long positions.

All these data confirm the long / short ratio of the exchanges and point to investors’ trust in Bitcoin. In other words, traders think that the all-time high will be exceeded in the short term.

The opinions and comments expressed here are only to the author belongs. It may not reflect Cointelegraph’s views. Every investment and trading transaction involves risk. When making your decision, you should do your own research.

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