BTC Bitmex Sentiment
A calculation based on the Bitmex lending rate and premium rate which updates every minute, but it's not the same as funding.
It accurately reflects how bullish/bearish market participants are that trade the XBT/USD perpetual swap contract.
Positive values (green) means the perp is oversold, which is bullish.
Negative values (red) means the perp is overbought, which is bearish.
The higher the ratio the stronger the signal.
Values of 0.25 or higher and -0.25 and lower are considered extremes and are highlighted with different colors.
There's an option to change those thresholds to your liking.
There's no point in looking at history before 2018 because the contract was much more wild back then and what's deemed "extreme" now wasn't "extreme" back then.
For trading:
The daily gives the best signals. When the indicator shows an extreme value you can reasonably expect it to be a good buy/sell opportunity.
It's works perfectly fine for lower time frames as well, but you're going to get a lot more highlighted columns.
There's no need to immediately act as soon as you see a differently colored column.
The indicator is best used for bias. When you're looking for a long opportunity for example see if the indicator is showing a lot of green.
The longer the ratio stays green and the higher the values the more certain you can be that it's a local bottom.
By default the market has a slightly bullish bias which also shows in the indicator. So when you see red, but the values are very low it's rather neutral instead of bearish.
Also keep in mind that during crazy pumps/drops like in March for example when bitcoin dropped %50 in a day, the ratio can go much further than the 0.25/-0.25 threshold.
Send me a personal message if you want access.
It accurately reflects how bullish/bearish market participants are that trade the XBT/USD perpetual swap contract.
Positive values (green) means the perp is oversold, which is bullish.
Negative values (red) means the perp is overbought, which is bearish.
The higher the ratio the stronger the signal.
Values of 0.25 or higher and -0.25 and lower are considered extremes and are highlighted with different colors.
There's an option to change those thresholds to your liking.
There's no point in looking at history before 2018 because the contract was much more wild back then and what's deemed "extreme" now wasn't "extreme" back then.
For trading:
The daily gives the best signals. When the indicator shows an extreme value you can reasonably expect it to be a good buy/sell opportunity.
It's works perfectly fine for lower time frames as well, but you're going to get a lot more highlighted columns.
There's no need to immediately act as soon as you see a differently colored column.
The indicator is best used for bias. When you're looking for a long opportunity for example see if the indicator is showing a lot of green.
The longer the ratio stays green and the higher the values the more certain you can be that it's a local bottom.
By default the market has a slightly bullish bias which also shows in the indicator. So when you see red, but the values are very low it's rather neutral instead of bearish.
Also keep in mind that during crazy pumps/drops like in March for example when bitcoin dropped %50 in a day, the ratio can go much further than the 0.25/-0.25 threshold.
Send me a personal message if you want access.
Release Notes:
Changed the standard style so that it matched all my other indicators.