Bitcoin might retest $28,000, but BTC futures and margin indicators remain healthy, according to noshitcoins.
Now, the upcoming Federal Reserve decision on interest rates on May 3 is causing Bitcoin investors to question the sustainability of the $28,000 support level. By pushing the rate return closer to 5%, the central bank removes incentives for risk markets investments; hence, it's essentially negative for the price of Bitcoin.
OKX, for instance, provides a margin lending indicator based on the stablecoin/BTC ratio. Traders can increase their exposure by borrowing stablecoins to buy Bitcoin. On the other hand, Bitcoin borrowers can only bet on the decline of the cryptocurrency's price.The above chart shows that OKX traders' margin lending ratio increased between April 17 and April 30. That is somewhat concerning, as it shows that leverage has been used to support the Bitcoin price gains.
To exclude externalities that might have solely impacted the margin markets, traders should analyze the long-to-short metric. The metric gathers data from exchange clients’ positions on the spot, perpetual and quarterly futures contracts, thus offering better information on how pro traders are positioned.There are occasional methodological discrepancies between different exchanges, so readers should monitor changes instead of absolute figures.
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