There is a saying in the cryptocurrency world that applies very well: what should fall doesn’t fall looks bullish, what should rise doesn’t rise looks bearish.
I believe many friends who trade in the futures market have definitely encountered some special market conditions, where the technical analysis shows bearish signals to go short, but it just won’t drop, and then a large bullish candle appears, or it clearly shows bullish signals but just won't rise, and finally a large bearish candle knocks it down.
This can be explained by the saying: what should fall doesn’t fall looks bullish, what should rise doesn’t rise looks bearish.
This saying, commonly used in the stock and cryptocurrency markets, sounds quite mystical, so next we will use specific data to explain the meaning of this phrase, which is also what this lesson will cover— the long-short ratio and open interest in the futures market, and their impact on the short-term and medium-term trends of Bitcoin.
The factors influencing Bitcoin’s rise or fall were mainly due to the higher weight of the spot market in earlier times, so the spot market was the main influencing factor for the price fluctuations of Bitcoin.
However, with the development and expansion of the futures market, it currently influences the short and medium-term trends of Bitcoin. Therefore, even if you are a spot trader, you should pay attention to the movements of the futures market.
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