Case Study into Bitcoins on-chain analysis (Part #4)This story is the last part of the case study I have been writing; check out the previous ones\u2026Part#1: On-chain Was Revealing, How Smart Money Works?Part#2: How I Kept My Sanity In The May Time Panic?Part#3: Cyclicity Of Panics, How To Time Crashes?Before diving deep into analysis, I want to clarify a few terms first as they are important for a deeper understanding of the system.Open Interests(O\/I)It is the total value of open positions on an exchange, now this position can be a long or a short. What it tells the amount of leverage that exists in the market.Funding RateIt\u2019s the difference between Perpetual Futures(futures that don\u2019t have an expiry) markets and spot prices. When it is positive, there are net longs on the market, and when negative, there are net shorts in the market.Now, this does not mean a negative funding rate means the market is bear, what it means is the leveraged market participants are more inclined towards a certain direction, that being bearish if the funding rate is negative.It is better to have a low funding rate for a better price action devoid of any sudden pullbacks.So funding rates tell us how far the derivative market is extended from the spot price and open interest tell us how much of present price action is caused by leverage, thus giving us an idea about the sustainability of future price action and the strength of a bull or bear run i.e the longevity of it.In the last article, I showed my observation of how price tends to bottom out at exactly 17:30 IST, which is also when the New York session goes live. It is a well-known fact that Asian session is usually bearish relative to western sessions, but the precision of\u2026<\/p>","protected":false},"excerpt":{"rendered":"
Case Study into Bitcoins on-chain analysis (Part #4)This story is the last part of the case study I have been writing; check out the previous ones\u2026Part#1: [\u2026]<\/span><\/p>","protected":false},"author":0,"featured_media":2796,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/afluxcoin.com\/fr\/wp-json\/wp\/v2\/posts\/5117"}],"collection":[{"href":"https:\/\/afluxcoin.com\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/afluxcoin.com\/fr\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/fr\/wp-json\/wp\/v2\/comments?post=5117"}],"version-history":[{"count":0,"href":"https:\/\/afluxcoin.com\/fr\/wp-json\/wp\/v2\/posts\/5117\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/fr\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/afluxcoin.com\/fr\/wp-json\/wp\/v2\/media?parent=5117"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/afluxcoin.com\/fr\/wp-json\/wp\/v2\/categories?post=5117"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/afluxcoin.com\/fr\/wp-json\/wp\/v2\/tags?post=5117"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}