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Analysis: Traders' Short Selling Sentiment Gradually Weakening, Market Expected to See Rebound
Summary: According to on-chain data analyst Murphy, the difference in long and short perpetual contract trading volume (VDB) measures the recent futures market, comparing the short-term trend of buying and selling power difference (30-day average) to the longer-term market benchmark (90-day median) to determine whether the current market is biased towards bulls or bears, and to ...
According to on-chain data analyst Murphy, the difference in long and short perpetual contract trading volume (VDB) measures the recent futures market, comparing the short-term trend of buying and selling power difference (30-day average) to the longer-term market benchmark (90-day median) to determine whether the current market is biased towards bulls or bears, and to observe whether this power is strengthening.
Since early August, VDB on Binance and other trading platforms has dropped into negative territory, indicating that perpetual contract traders - a speculative group in this market - have increasingly strong short selling sentiment in the subsequent period. However, this indicator has high volatility, so comparing short-term and medium-term to observe the direction and extent of the deviation. To confirm whether this negative sentiment will develop into a sustained trend (red arrow in the chart).
The current trend of VDB is gradually reversing (green arrow in the chart), indicating that bullish sentiment is rising and traders' short selling sentiment is gradually weakening. Based on past data, if this trend continues, the market is expected to see a rebound. Analysis is for learning and communication purposes only, not as investment advice.
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Link: Analysis: Traders' Short Selling Sentiment Gradually Weakening, Market Expected to See Rebound [Copy]
