1. BTC: Longs/Shorts Delta
This chart shows the net difference between long and short positions in Bitcoin (BTC) over time, denominated in USD. Here's what stands out:
- Positive Delta: Indicates more long positions than short positions or shorts get liquedated.
- Negative Delta: Indicates more short positions than long positions or longs get liquedated.
- Two notable points:
- At 57.9K, there is a significant long/short delta of 46.0M.
- At 58.2K, the long/short delta is 21.7M.
These large positive deltas suggest that, at those price points, there was a substantial net long position, indicating bullish sentiment among traders.
2. Net Taker Volume (Unit: USD)
Difference between buy and sell volumes. Positive values indicate more buying, while negative values indicate more selling.
Insights:
1. BTC: Longs/Shorts Delta:
- Large positive deltas suggest traders were predominantly holding long positions at those price points, indicating bullish sentiment.
- Monitoring these deltas can help identify potential support/resistance levels or market sentiment shifts.
2. Net Taker Volume:
- The net taker volume indicates buying or selling pressure.
- Positive net taker volumes coincide with rising BTC prices, while negative volumes correlate with price drops.
Implications
* The combination of high long/short delta and resistance at similar price points
suggests that while there's significant interest in longs, the market is
encountering selling pressure at resistance levels, preventing the price from
rising.
* The substantial negative net taker volume indicates that bears are currently
dominating, pushing the BTC price lower.
Written by Amr Taha