Derivatives stats on Binance point to a possible decline in bitcoin

Research firm CryptoCompare reports that the numbers showing on Binance suggest that bitcoin may still continue its downward trend in the near future.

This is indicated by the amount of open positions on perpetual futures contracts for the purchase of the main cryptocurrency. The number of such positions decreased by 40%, which indicates a temporary lack of interest in growth purchases. Considering that Binance accounts for about 60% of cryptocurrency derivatives trading worldwide, we can conclude that there is a further decline.

Professional traders do not want to enter a trade yet, as they see in the future the opportunity to open their perpetual positions at better prices. In addition, traders have already closed many trades and are waiting for a new opportunity. These thoughts were shared by one of the CryptoCompare analysts Jacob Joseph.

Binance is not the only exchange showing a temporary loss of interest in opening perpetual trades. Similar indicators have been seen on other cryptocurrency exchanges. The most significant result can be seen on Crypto.com, where the reduction of such positions reached a record high of 83%.

More modest reductions in positions can be seen on the OKX and Bybit exchanges, where 21% and 19% of derivatives perpetual trades were closed, respectively. A big surge in sales hit the market, hitting the $18,000 mark. At this point, many traders decided to play in the short term and take profits.

Yesterday at 18:55 UTC +0 BTC reached $18,300, setting a new record for the last month.

In addition to expecting a downward movement, one should not forget about the situation with FTX, which, in turn, could also motivate traders to sell the currency. Many investors have come to prefer keeping the flagship digital asset in their hardware wallets instead of holding funds on exchanges, which can leave customers without funds.

Analytical data also speaks of continued holding of bitcoins in accounts, which confirms the hypothesis that investors are interested in the long term.