Bitcoin [BTC] Futures Market Update – Here’s What Price Indicators Project

bitcoin futures market update

Bitcoin [BTC] price held on to $7400 levels for the last two days after a steep drop on Tuesday. The increased volatility in price also increased the trading interest. The other parameters, such as long/short ratio and open interest, have also varied considerably in the last 24 hours.

Trading Volumes and Open Interest

The trading volumes on many exchanges saw a massive spike on 24th October as price broke below $7500. While Bakkt recorded a new ATH of $4.8 million on Wednesday. Reportedly, on Thursday, the volume is around $2.4 million.

CME also witnessed a spike in trading volumes for futures contracts of both October and November. The October contracts are scheduled for expiry tomorrow. The open interest for Nov and Oct contracts is 471 and 1673, respectively.

The trading volumes on crypto Exchanges like Okex, BitMEX, and Bitfinex also saw a spike. However, the open interest has dropped on the exchanges.

btcusd open interest
Bitcoin Perpetual Swap and Futures Open Interest and Trading Volume (Okex)

Long/Short Ratio

The long-short ratio has varied as well in the past 24 hours. The overall ratio on spot exchanges like Okex and Bitfinex is long. With more than 70% long interest compared to short on Bitfinex, the bulls seem to have entered long perpetual contracts. Nonetheless, the change in the past two days has witnessed an overall drop.

bitcoin bitfinex chart
Bitcoin Long/Short Ratio 1-Day Chart on Bitfinex (TradingView)

The market sentiment tuned highly bearish on Wednesday is now seeing a slight revival towards the bulls. Moreover, on Okex, the long-short ratio has spiked after a brief moment of panic. The proportion of long to short orders has increased from around 1.2 to 1.4.

long short ratio okex
Bitcoin Contracts Long/Short Ratio 1-Hour Chart (Okex Exchange)

The top 100 traders on Okex are predominantly long on Bitcoin, as well. It, however, saw a flash drop on 23rd October the short percentages increased to about 59% with longs at 40%. It soon revived back up to 60%, forming a deep trench.

Bitcoin [BTC] Basis

Bitcoin Basis accounts for the difference in the price of the perpetual swap and futures market from the spot market.

BTC basis on Okex flipped negative after the drop on 23rd October. It recorded a high of negative 18 points on Tuesday. Nevertheless, after consistently being negative, the basis is reaching equilibrium near zero. Currently, the Bitcoin basis on Okex is negative 0.45.

Funding Rates

Another metrics that closely relates to the BTC basis is funding rates. As a positive basis indicates buying interest, a positive funding rate reflects the same.

The funding rates on BitMEX have been negative for the more significant part of October. The funding rates spiked further negative post the plunge on Tuesday.

bitmex funding rate
Bitcoin Contracts Funding Rate on BitMEX (TradingView)

The daily funding interest on Bitfinex also spiked to 0.03% for short trades compared to 0.02% for longs.

Where do you think the market is headed by looking at the order book? Please share your analysis with us. 

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