Retail Traders Dominate the Bitcoin Futures Trading Market…What Does That Mean?


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Fundamental analysis accompanies technical analysis to give the analyst an integrated view of the current and upcoming Bitcoin price movement, and it is not permissible in any way to underestimate the value of an analysis at the expense of another.

Recently, Mr. Ki Yong Ji, CEO and founder of CryptoQuant, which specializes in analyzing blockchain and crypto networks, shared data and figures about the flow dynamics of Bitcoin (BTC) in crypto derivatives trading platforms.

These numbers showed that bitcoin whales avoided futures trading in the final days of 2021.

Bitcoin futures trading volume led by retail traders:

Ki Young Ji took to Twitter to share bitcoin-related data and figures between spot and derivatives trading platforms with a 30-day moving average.

The influx on derivatives trading platforms appears to be at its lowest since 2018.

As such, it is currently likely to be driven by smaller retail investors.

Usually, this is a bearish indicator.

But on the Bitcoin price chart, massive influxes led by whales coincided with the Bitcoin price rally.

The move away from bitcoin futures contracts by whales can also be attributed to the fluctuation that was around bitcoin between a rapid rise and fall, which means rapid liquidation operations.

Accumulation or distribution of centers?

The above indicator worked perfectly in September 2021.

Since early September, Bitcoin (BTC) whales have moved cryptocurrencies to futures platforms to open new positions or fill margin.

A CryptoQuant analyst has revealed that some whales are dumping their bitcoins, so traders must remain very vigilant until bitcoin holds over $51,000.

At the same time, things may not be so bad for the Bitcoin bulls.

According to Glassnode data, the capitulation phase ended (when the bitcoin price fell to $42,200), and the index called “Bitcoin Liquid Supply Change” entered bullish territory.

The Fear and Greed Index has left the area of ​​intense fear.

In addition to the decline in the balance of Bitcoin on the exchanges.

Read also:

Cryptocurrency LUNA Beats Binance Blockchain With $20 Billion Total Locked Value

US Senator Cynthia Loomis plans to introduce a comprehensive Bitcoin bill in 2022

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