Pro traders buy the Bitcoin price dip while retail investors chase altcoins
Cointelegraph
Published May 04, 2021 04:02PM ET
Updated May 04, 2021 07:20PM ET
Bitcoin (BTC) has been struggling to sustain the $55,000 support level for the past 16 days, or basically since the April 17 record-high $5-billion long contracts liquidation. The rejection that took place after the $64,900 all-time high had a devastating impact on the sentiment of retail traders, as measured by the significant drop in the perpetual futures funding rate.
However, despite Bitcoin's recent underperformance and May 4's 6.5% drop, pro traders have been buying the dip for the past 24 hours. These whales and arbitrage desk movements are reflected in the OKEx futures long-to-short ratio, as well as Bitfinex's margin lending markets. As this buying occurs, retail traders are mainly quiet, which is reflected in the neutral perpetual funding rate.
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Written By: Cointelegraph
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