The Bitcoin [BTC] The derivatives market regained some excitement after the latest rally to $72,000. BTC’s rebound came after President Donald Trump announced a ceasefire, although recent developments appear to threaten negotiations for lasting peace.
This has spooked the market and Bitcoin has been hovering around $70,000 for the past 12 hours. Analysts were quick to point out that the rally was just a short-term move, and that smart money was beginning to position itself for a bearish reversal.
A crypto analyst noted that the derivatives buyer’s Buy/Sell Ratio showed extreme buyer aggression. The metric’s seven-day moving average stood at 1.04 at the time of writing. The Taker Buy/Sell Ratio itself peaked at 1.13 on April 7. The data comes from CryptoQuant and covers all exchanges.
Although buyers were aggressive in the derivatives market, the analyst warned of ‘phantom leverage’. The USDT Refresh Rate Z-Score (30DMA) monitors capital support in the market.
The benchmark recorded a value of -1.58, meaning the market pushed the price higher using unrealized profits as margin. The necessary injection of new USDT to support the movement was not seen.
This made the situation unfavorable for long positions. The current rally is fragile and a wave of profit-taking could quickly erase recent gains.
The risk appetite of BTC derivatives traders is increasing, but this is dangerous
Crypto analyst Axel Adler Jr noted that the Bitcoin Futures Advanced Sentiment Index showed growth in Bitcoin Futures sentiment over the past three days. The metric combines price, taker flow, open interest and volume delta to calculate sentiment.
The index stood at 53.2%, showing a full recovery towards risk-taking among futures traders. These elevated sentiments must be supported by sustained demand to keep the price and OI high.
Yet the threat of a bull trap remains. A recent AMBCrypto report noted that the BTC whales were more inclined to short positions than long positions. Historically, April has been a high volatility month for crypto.
Given both factors, traders should remain cautious about going long under these circumstances.
Final summary
- Sentiment among Bitcoin futures traders was positive after the recent rally to $72,000.
- The USDT Refresh Rate metric showed a lack of new capital entering the market, putting at risk the rapid gains Bitcoin has made since Monday.