Typically, traders become skeptical after Bitcoin 'completes' a strong performance like the stellar move from $12,000 to $15,950 seen over the past few weeks.
The 35% gain over the past 30 days led some traders to conclude that BTC is over-extended and in need of a pullback.
Generally, the market is displaying mixed signals as Bitcoin price fluctuates between $15,000 to $16,000 so many traders are left to rely on their bias to confirm their investments decisions and this is a dangerous place to be.
Take notice how top traders at Binance have been reacting after Bitcoin's movements.
The chart suggests traders are responding to price it rather than trying to predict it.
It is worth noting that each exchange treats top traders data differently, as there are multiple ways to measure clients net exposure using derivatives.
Interestingly, OKEx data provides a different approach by top traders as Bitcoin rallied above $15,800.
There seems to be less desperation compared to the reactive behavior of Binance traders.
Regardless of the success rate of these strategies, the long-to-short ratio at both exchanges show traders do not feel too confident about Bitcoin's current price action.
Doing nothing sometimes is the best decision one can make, especially when even pro traders seem to be changing their positions after small trend changes.
Data show traders neither bullish nor bearish over sub-$15.5K Bitcoin price
Published on Nov 10, 2020
by Cointele | Published on Coinage
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