There are few indicators capable of accurately detecting professional traders’ sentiment on Bitcoin (BTC). To ascertain whether or not market participants are positioned in a bullish or bearish manner, analysts usually rely on technical analysis and derivatives markets, although those usually mix retail flow.
More recently some exchanges created internal metrics exclusively measuring top traders positions. Looking at exchange-provided data highlighting traders’ long-to-short positioning, one can see that the indicator currently shows a 30-day high on the long/short positions at Binance.
Despite launching its futures platform only ten months ago, Binance is a top-5 contender with $430 million BTC open interest. A similar long/short ratio has been observed at Huobi futures.
Bitcoin futures and options markets corroborate such a favourable thesis by displaying a positive contango and a negative skew.
By combining three indicators (top traders positions, options skew, and futures contango) there is indisputable evidence that professional traders are bullish in the short-term.
Top traders long-to-short ratio
The Binance net long/short notional exposure of its top BTC/USDT futures top traders typically favors longs but the indicator now stands at its highest level.
Binance top traders long/short ratio. Source: Binance
As per the above chart, top accounts net exposure is currently 12% larger than shorts. This is a 6% increase from three days ago.
Huobi, also a top-5 BTC futures exchange, depicts a similar trend and currently shows $640 million open interest. What is notable is that Huobi’s indicator shows a