Bitcoin (BTC) might take failed to sustain the $42,000 support, and for many, this is a slightly bearish sign. Interestingly, the downwards move occurred shortly after Saudi Aramco, Saudi Arabia's largest oil exporter, denied having claimed to outset mining Bitcoin.

Acme traders at exchanges seized the opportunity to add leverage-long positions, a clear bullishness indicator. Furthermore, margin traders take been increasing their stablecoin borrowing, indicating that whales and professional traders are expecting more than upside from cryptocurrencies.

The 24% weekly rally that took Bitcoin from $34,000 to its highest level since May twenty was fueled by a xxx% surge in the number of "active entities," according to Glassnode. This indicator could have triggered these savvy traders to increase their positions despite the lackluster price performance.

Pro traders are using leverage to purchase below $xl,000

OKEx top traders BTC long-to-short ratio (above) and BTC cost at Bistamp in USD (below). Source: OKEx and TradingView

Detect how OKEx top traders take increased their Bitcoin longs from 0.68 on Sabbatum to i.16 2 days after. A 0.68 ratio indicates those whales and professional traders' long positions were 32% smaller than their respective brusk bets — positions that benefited from a price decrease.

On the other manus, the 1.xvi long-to-short favored bullish positions by xvi% and reflected confidence fifty-fifty as Bitcoin's price dropped beneath $xl,000 on Monday.

However, there is no manner to know whether those traders airtight short positions or effectively added longs. To amend understand this movement, one needs to analyze margin lending data.

Lending markets provide additional insight

Margin trading allows investors to borrow cryptocurrency to leverage their trading position, therefore increasing the returns. For example, one tin buy cryptocurrencies by borrowing Tether (USDT), thus increasing the exposure. On the other hand, borrowing Bitcoin can only be used to curt it, or betting on the price decrease.

Unlike futures contracts, the residuum between margin longs and shorts isn't e'er matched.

OKEx USDT/BTC margin lending ratio. Source: OKEx

The above chart shows that traders have been borrowing more Tether recently, as the ratio increased from 2.00 on Fri to 2.l. The information leans bullish in absolute terms because the indicator favors stablecoin borrowing by 2.5 times. It also shows resilience in the face of the contempo BTC cost drop.

Derivatives data leaves no doubt that OKEx top traders added long positions even as Bitcoin corrected 9% from the $42,600 acme in the early on hours of Lord's day.

Unlike retail traders, these heavyweights can withstand some troubled waters, although neither the long-to-short indicator nor the margin lending shows signs of excessive leverage.

At the moment, longs appear confident in the face of a natural correction that occurred after an 11-24-hour interval rally.

The views and opinions expressed here are solely those of the writer and do not necessarily reverberate the views of Cointelegraph. Every investment and trading movement involves risk. You lot should conduct your own research when making a decision.