Four Key Bitcoin Price Descriptions Explain Why Traders Are Buying All Bull Markets Now

A few Bitcoin futures and options show traders now see a drop in BTC as a buy. Although Bitcoin attempted its December 11 low of $ 17,580, investors remained bullish.

Investors were happy when Bitcoin tested its Dec. 11 low at $ 17,580, despite some analysts giving lower estimates.Last week will end at the same level, but the content of Bitcoin is healthy.

When Bitcoin prices fall, it is usually a true bearish analysis and it can affect trader's investment decisions, but traders know best.They are over-protected against FUD and speculation against the negative effects of price movements.

Last week, Bitcoin's market share continued to rise from 63.5% to 64.5%.This move could be supported by a $100 million acquisition of MassMutual Insurance Company and the sale of the $650 million contract to MicroStrategy.

The news seems to give more confidence to investors who think the $20,000 backtest is possible.

Bitcoin has outperformed 15 altcoins, which have fallen an average of 2.5% over the past week. However, the total volume was down from the previous month. The indicator has half canceled recently at $17,580 indicating a lack of confidence.

On the other hand, recent data shows that there is no market interest at the current level of $19,100, but that could change this week.

Institutional investors choose to buy BTC in a merger

Crypto fund manager Grayscale Investments continues to add more than $ 10.7 billion in BTC to its portfolio.

Last week, Greyscale collected 14,050 BTC, for a total of 561,130 BTC.So it's another busy week for Greyscale Bitcoin Trust. A similar high can be seen by analyzing the profit margin for each valid BTC hold, which is currently 0.00095116 BTC.

As you can see in the photo above, the rate has increased from 11% to 22% in the last 7 days.The measure showed an 8% rate hike on Dec. 9, but quickly fell back to 16%. We therefore envisage positive energy, above the quarterly average of 12%.

Perpetual term funds are stable.

Perpetual contracts, also known as reverse swaps, affect interest, typically paid every eight hours.Income is guaranteed non-volatile. The interest open between the buyer and the seller is always the same, but the leverage may be different.

If the (long) buyer needs more leverage, the price-performance ratio will be better.It is therefore the buyer who will pay the price. This is especially true in the bull industry which often demands more of bulls.

A stable rate above 2% is defined as a very good expectation.These levels are reached when the market is rising, but can be problematic if the price of BTC is sideways or falling.

In such cases, the buyer's high energy can have a major impact if the price drops.

Even if Bitcoin falls on December 11, weekly gains may avoid a negative trend.This data shows that both short (sell) and long (buy) traders use approximate leverage.

These measures can be considered poor because there is room for both parties to increase their stakes.

Future rates will be the same.

Investment comparisons are a favored tool for selling traders and can show some distraction as they are overused. On the other hand, professionals prefer to conclude the first long-term contracts.

Traders can gauge the magnitude of the upside by measuring future highs or lows relative to the regular market.Future 3 month calendars should generally change at a rate of at least 1.5% from the exchange rate.

When this indicator changes negatively, it is the red alert flag. Also called divergence, this situation indicates that the market is going down.

The chart above shows that on December 1, the short indicator touched a bullish level of 5%, but then fell to 2.5% as Bitcoin fell $20 trillion.

The recent indicator rose to 4%, indicating confidence in the recovery of the BTC rate, indicating traders' expectations.

Option buy / sell ratio

You can gauge general market sentiment by measuring the weight of a call (call) or high (sell) option.kab. In general, the bullish strategy uses call options and the bearish strategy uses options.

A sample rate of 0.70 means that the open interest of the placed option is 30% after the call, so the assumption is generally bullish.

Exchange the 1.20 indicator prefers the 20% placed option and can be seen as bearish.It is important to note that this indicator includes all BTC trading options included on a monthly basis.

As the value of Bitcoin reaches $ 20,000, it is natural for investors to seek downside protection. Thus, on December 2, the comparison shows a maximum of 0.70. We are fair to the option to buy more than 30% despite the increase.

After this period of application of protection, the indicator returns to a healthy level of 0.64. Therefore, these indicators are medium bullish.

Bitcoin price surpasses, but investors are still bullish

Overall, all of the key points discussed above remain steady in optimism, especially given the market's recent reversal from $17,580.

With BTC hovering above $ 19,000, traders gain more confidence than the rate of return when prices fall.

Now all indicators are either average or bullish, supporting the idea that Bitcoin can top anytime.