Pro traders buy the Bitcoin price dip while retail investors chase altcoins
May 4, 2021. Summarized by summa-bot.
Compression ratio: 32.3%. 1 min read.
Data shows pro traders are heavily accumulating the current dip in Bitcoin price while retail investors are occupied with trading altcoins.
Bitcoin (BTC) has been struggling to sustain the $55,000 support level for the past 16 days, or basically since the April 17 record-high $5 billion long contracts liquidation.
The rejection that took place after the $64,900 all-time high had a devastating impact on the sentiment of retail traders, as measured by the perpetual futures funding rate significant drop.
These whales and arbitrage desk movements are reflected in the OKEx futures long-to-short ratio, as well as Bitfinex's margin lending markets.
As this buying occurs, retail traders are mainly quiet, which is reflected in the neutral perpetual funding rate.
This discrepancy is why retail traders tend to prefer perpetual futures, albeit with the varying carry cost caused by the funding rate changes.
This data is clear evidence that retail traders aren't comfortable adding Bitcoin long positions despite the 9% correction in two days.
On the other hand, the top traders' long-to-short indicator reached its highest level in 30 days, signaling buying activity from whales and arbitrage desks.