As Bitcoin undergoes a price correction, one of the key onchain data metrics, the short-term SOPR, is showing values lower than 1. This means that short-term holders of less than 6 months have been selling Bitcoin at a loss, which has been a good indicator of when to buy Bitcoin during past bull runs when the short-term SOPR value is lower than 1.
For more detailed bet timing, recommend utilizing Funding Ratio of market data. Usually, new retail traders tend to close their positions when the price drops and bet against the trend. We should use that moment as an opportunity.
When Bitcoin suddenly plunges by more than 15% during an uptrend, futures market traders tend to get nervous about further declines and quickly place short position bets, as explained earlier. However, whale investors tend to use this opportunity to buy spot aggressively, maximizing the losses of the short positions bet by retail investors, thus creating a short squeeze strategy.
In conclusion, a funding ratio value of -0.01% would be a good opportunity to try your hand at betting.
Written by MAC_D