Under market FOMO, these indicators are worth paying attention to
Due to the anticipated regulatory easing environment brought about by Republican control of Congress, market FOMO sentiment is high, and analysts generally believe that cryptocurrencies will continue to be bullish in the short term.Author: BitpushNews
Bitcoin surged past $90,000 on November 12, once again setting a new historical high.
According to TradingView data, at 12:56 PM Pacific Standard Time on November 12, Bitcoin rose above $90,000 on Coinbase, with a 24-hour increase of 11%, just one step away from entering the $100,000 range.
It is worth noting that the trading price of Bitcoin on the Coinbase platform is often slightly higher than on other platforms, which is referred to as "premium trading." This means that even when Bitcoin prices are already high in the overall market, there are still many buyers willing to purchase at higher prices on Coinbase, further indicating strong market demand for Bitcoin.
As of the time of writing, the trading price of Bitcoin has retreated to $88,223, with a 24-hour increase of 0.4%.
Altcoins are mixed, with Bonk (BONK) leading the gains among the top 200 altcoins, rising 27.7%, followed by AIOZ Network (AIOZ) up 23.2%, and Akash Network up 18.8%. EigenLayer (EIGEN) led the declines, falling 12.8%, followed by DOGS (DOGS) and Artificial Super Alliance (FET), which dropped 11.6% and 11.5%, respectively.
The overall market capitalization of cryptocurrencies is $2.98 trillion, with Bitcoin's market share at 59.5%.
CoinGlass data shows that in the past 24 hours, extreme price volatility has led to nearly $940 million in liquidations across the crypto market, the largest single-day liquidation amount since August 5.
In the U.S. stock market, at the close, the S&P 500 index, Dow Jones Industrial Average, and Nasdaq Composite all closed lower, down 0.29%, 0.86%, and 0.09%, respectively.
Analyst: Some Indicators Worth Watching
Due to expectations of a regulatory easing environment with the Republican control of Congress, market FOMO sentiment is high, and analysts generally believe that cryptocurrencies will continue to trend upward in the short term.
However, Shubh Varma, co-founder and CEO of Hyblock Capital, pointed out: "One noteworthy indicator is the True Retail Long percentage, which is unusually low at only 40%, sitting in the 20th percentile over the past 90 days. Additionally, the Open Interest (OI) is in the 99th percentile. This dynamic echoes the situation on November 7, when the True Retail Long percentage was even lower, at the 12th percentile, while OI was also high. Historically, when OI is high and retail long positions are low, it often leads to short positions being squeezed out, resulting in significant upward movement."
Moreover, data from the derivatives market shows that top traders continue to favor long positions, with the average leverage difference between longs and shorts exceeding +10 again, which is a strong bullish indicator.
Analysts explain that typically, this leverage pattern occurs after a price decline, but this time it has appeared after a significant price increase. If long leverage continues to increase following Bitcoin's recent surge, this deviation may indicate sustained bullish momentum.
Varma suggests using pullbacks as buying opportunities and states that given the strength of this rebound, buying on dips could provide favorable entry points. However, he warns traders to closely monitor indicators such as retail long positions and leverage imbalances, which can help investors assess market risks and potential turning points. Additionally, other factors such as fundamentals and policy should also be considered.
