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Long push: 9 indicators to judge the rise and fall of the market
Author: Ignas, DeFi Research; Source: Twitter @DefiIgnas; Compiler: MarsBit, MK
Are we going up or down? Here are some market indicators worth considering: First, a drop in Bitcoin on exchanges is bullish. But other indicators present a mixed picture:
Stablecoin market cap drops: bearish as purchasing power weakens.
Relative Strength Index of 20: Bullish as the market is oversold.
Declining Leverage Ratio: Bullish(?) as speculators get cleared and long-term investors can start accumulating. Note: Leverage is still higher than it was a few months ago.
Negative Funding Rate: Bearish as traders are still willing to short.
Miner Positions Index (MPI): Bearish as miners are selling more positions compared to the 365-day average.
US ISM manufacturing nears bottom of 2-year downtrend: Bullish as stocks and Bitcoin both show signs of reversing when ISM hits bottom.
Weekly active crypto developers down only slightly: bearish as developers prepare for a decentralized future.
Korean premium index is on the rise: Bullish as Koreans are buying the bottom! Or, is this bearish because high kimchi premiums always mark market tops? (High premiums indicate strong buying pressure from Korean retail investors).
Overall, I wish I could have known if we were going up or down. But things are not that simple. These indicators do not clearly show where we are going in the short term. What data are you looking at?