- Trader discussion about Bitcoin has been at a healthy level.
- Liquidity flowing into the futures market was relatively modest.
The past weeks, Bitcoin [BTC] was trading around $30,200 and just under $29,000. With its price in a narrow range, it is not uncommon for BTC traders to get caught between going bullish or succumbing to the bearish side.
Read Bitcoins [BTC] Price prediction 2023-2024
Interestingly, Santiment is July 25th analysis considered which flank traders are more inclined to camp. In Brian Quinlivan’s on-chain analysis, traders seem unconcerned about Bitcoin losing the $30,000 psychological support level.
Bulls eyes over bears?
According to Quinlivan, this conclusion was because social volume was based on buying and selling sentiment. The analysis showed that the number of bullish calls exceeded the number that appeared to be calling for the price top.
This means that the average trader has joined the notion that the price of BTC, if the tight trading range outputs, evolve upwards rather than downwards.
Source: Sentiment
Further that of Bitcoin social dominance was 20.58%. According to Quinlivan, the metric implied that the number of BTC discussions was at a healthy level given that,
Rather, the percentage of trader discussions related to Bitcoin (compared to the top 100 altcoins) is still holding up in a region we consider a “healthy” area on our map. Not much, but you can see that BTC’s social dominance is still 2.42% above the healthy zone of discussion
Source: Sentiment
Mild liquidity in the market
In terms of Open interest (OI), Santiment showed that it has increased. Open Interest is the number of outstanding futures or options contracts on an exchange. When the outstanding interest increases, it means that new money is entering the market.
But when it falls, it is a sign that the market is liquidating and more traders are closing their positions.
Source: Coinglass
In the case of Bitcoin, the Open Interest floated around the same area for a while. This indicates that the liquidity flow to the market fluctuated between an increase and a decrease.
In terms of funding rate, Santiment showed that the metric was still positive. For context, funding rates are periodic payments between long and short perpetual contract positions.
Realistic or not, here it is BTC’s market cap in ETH terms
A negative financing rate means that perpetual prices are below the spot price. In this case, traders are bearish. But when the funding rate is positive, it means that traders are feeling optimistic towards the price action.
Source: Sentiment
In conclusion, the general sentiment towards Bitcoin tends towards indecisiveness. At this point, traders are skeptical about going full bullish or betting on a recession.