Crypto market rally stalls at the $1.2T level, but bulls are getting positioned

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This week the crypto market got off to a rocky start, but noshitcoins explains why there is little for bullish traders to worry about.

Options traders are reasonably confident above $1 trillion

A put-to-call ratio of 0.70 indicates that put option open interest lags behind the greater number of call options. In contrast, a 1.40 indicator favors put options, which is a bearish sign.Since March 10, Bitcoin's put-to-call ratio has been either balanced or favoring neutral-to-bullish call options. Even though Bitcoin's price has risen by 41% in the past two weeks, options traders indicate they are not increasingly concerned about a price correction.

A positive funding rate indicates that longs demand more leverage. However, the opposite situation occurs when shorts require additional leverage, causing the funding rate to turn negative.In the past week, the seven-day funding rate for the majority of the leading cryptocurrencies has been neutral, indicating that no excessive buying leverage has been used to support prices. This translates to firepower for bulls, if necessary, and a significant reduction in liquidation risks.

 

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