Key Points
- Bitcoin traders lifted the perpetual long-short ratio, suggesting a “buy the dip” opportunity.
- Earlier, BTC price dropped to $87,000 levels, following an increase in open futures position on Binance.
Bitcoin traders are currently buying the dip on the Kraken crypto exchange, according to a new interview with its head of derivatives, Alexia Theodorou. Today, BTC prices dropped from $95,000 to $87,000 levels before a rebound above $98,000.
BTC Traders Buy the Dip on Kraken
It seems that Bitcoin hunters are lifting the perpetual long-short ratio to a record high of 0.8, according to Theodorou. This ratio measures the proportion of buy positions open relative to active sell positions at any given time.
In today’s interview, she explained that despite BTC dropping below $90,000 earlier, Kraken has seen a surge in traders who open long positions on its BTC perpetual markets.
While the long-short ratio climbed higher, open interest has reached a four-week high. This suggests that traders could be anticipating a price rebound and are buying the current dip.
Evidence of dip demand in Kraken is a bullish sign, but the long-short ratio remains below 1 – this means there are more shorts than longs on the crypto exchange.
Liquidations are reportedly still at normal levels on Kraken, meaning that there could still be excess leverage which could potentially leave the market vulnerable to more volatility, according to Theodorou.
The total crypto liquidations in the past 24 hours are currently at $1.52 billion, according to Coinglass data.
Bitcoin’s price decline comes following a $1 billion increase in open futures on Binance yesterday, most likely due to traders taking shorts, anticipating a further price drop.
Bitcoin Trades Above $88,000
At the moment of writing this article, BTC is trading above $88,000, seeing a rebound from the $87,000 dip earlier.
Bitcoin’s price drop came amidst multiple factors including macroeconomic uncertainty, high ETF outflows, and increased market leverage.
However, Bitcoin traders continue to buy the current dip, something that Donald Trump’s son, Eric Trump also advised via an earlier X post today.
Bitcoin is Still Up By 71% Since February 2024
Joking about the future panic in the crypto market, Binance’s CZ shared a post in December 2020, saying that he’s waiting for the headlines featuring “Bitcoin Crashes from $101,000 to $85,000”.
Speaking of the current Bitcoin “crash”, on February 25, 2024, exactly one year ago, BTC was trading above $51,000. BTC is up by over 71% since.
Binance’s CEO, Richard Teng, also shared a thread on X, explaining that the current price drop is not a reversal, but a “tactical retreat”. He advised the crypto industry to remain focused and optimistic and remember that the fundamentals of crypto remain strong.
