Selecting a timeframe for technical analysis is always a tricky topic, simply usually, the longer the tendency, the college the odds information technology will prevail. For example, those analyzing the three-month Bitcoin (BTC) chart will unarguably identify an ascending channel pattern that was initiated in late June.

Bitcoin price in USD on FTX. Source: Tradingview

Bears will likewise e'er find ways to justify their views despite the fact that Bitcoin has hitting new all-time highs following the U.s.a. consumer cost surge to 6.2%, which is the biggest aggrandizement surge in 30 years.

However, data from on-chain analytics firm Glassnode shows that long-term investors have stopped net accumulating and are now diversifying into altcoins. According to analyst Willian Clemente, the recent internet selling from that class of investors was the showtime in vi months, signaling a "sell into strength" move.

It is worth highlighting that the Bitcoin network was upgraded on Nov. 14 to improve the scripting and privacy capabilities. From a trading perspective, this creates a potential "sell the news" outcome, as the improvement was largely expected by the community.

Information shows pro traders are neutral-to-bullish

To understand how bullish or bearish professional traders are leaning, one should analyze the futures basis rate. This indicator is frequently referred to as the futures premium, and it measures the difference between longer-term futures contracts and the current spot market levels.

A 5%–15% annualized premium is expected in healthy markets, which is a situation known as contango. This cost difference is caused past sellers enervating more money to withhold settlement longer.

Bitcoin 3-month futures basis rate. Source: Laevitas.ch

Find the fasten to twenty% on Nov. 9 every bit Bitcoin accumulated xiv% gains in iii days. This brief menses of excessive optimism retracted every bit BTC corrected ix% after the $69,100 all-fourth dimension high on Nov. 10.

Currently, the basis indicator stands at a healthy 12%, signaling confidence from these traders.

Options traders are not as bullish

To exclude externalities specific to the futures instrument, one should also clarify options markets.

The 25% delta skew compares like telephone call (buy) and put (sell) options. The metric will turn positive when fear is prevalent because the protective put options premium is college than similar chance call options.

The contrary holds when greed is the prevalent mood causing the 25% delta skew indicator to shift to the negative area.

Deribit BTC options 25% delta skew. Source: Laevitas.ch

A skew indicator between -8% (greed) and +eight% (fright) is considered neutral. Sept. 29 was the last time that indicator moved exterior this range, reaching +x%. Curiously, that same twenty-four hour period marked the end of a 23-day bear movement that took Bitcoin from $52,700 on Sept. half dozen to $41,000.

Every bit for the current neutral 25% delta skew, it might exist interpreted every bit a "glass one-half full" scenario because pro traders are somehow unfazed by the 95% gains year-to-engagement.

Data shows there is room for additional leverage from Bitcoin buyers, which ideally would come across the price continue to merchandise within the ascending channel that was initiated in late June.

The views and opinions expressed hither are solely those of the author and do non necessarily reflect the views of Cointelegraph. Every investment and trading move involves gamble. Yous should bear your ain research when making a conclusion.