The recent downward correction in the Bitcoin it does not seem to have discouraged the comforting sentiment of many analysts, who opt for one long-term bullish view of BTC.
Among them is certainly Robbie Liu, investment analyst at OKEx, according to whom the "Musk rally"Last week of more than $ 6.000 helped bullish sentiment recover and reinvigorate its strength, adding that the close above the run-up peak could push BTC / USD to hit $ 40.000 again or even to recover $ 42.000.
"The long / short ratio had small highs and lows during the week, hovering in a range of 1,07 to 1,53, and although prices continued to move higher, the ratio did not return to Friday's high. last of 1,80Liu explained, adding that the ratio is now running close to 1,20.
In retrospect, the long / short ratio compares the total number of users who open long positions versus those who open short positions. When the ratio is low, it indicates that more traders are holding short positions, that is, betting in favor of a drop in prices. At 1,20, the long / short ratio is sufficiently bullish, suggesting that Bitcoin could see further price gains in the coming sessions.
There are also other readings that indicate Bitcoin well positioned for a bullish view. For example, the quarterly futures premium, which measures the base difference between Bitcoin futures contract rates and spot prices, is currently 4,8% or $ 1.800. This indicates that the market is regaining confidence in an upward move. "Furthermore," adds Liu, "the funding rate for perpetual swaps, which follow the same trend as the quarterly premium for futures, continued to move higher during the week. It peaked at 0,19% on Thursday morning before the price fell back for a short-term correction. The current funding rate has been running around 0,06% which is within the normal range and leaves room for Bitcoin to continue its upward movement", he added.