Bitcoin (BTC) price is however 4.4% downwards from its Aug. 23 high at $fifty,500, leading some traders to question whether the local top marked the cease of the recent 34-day long balderdash run.

Even with the current correction, derivatives data and the maneuvers of professional investors are not flashing any bearish signals.

Bitcoin toll in USD at Coinbase. Source: TradingView

On Aug. 24, prominent technical analyst John Bollinger suggested that Bitcoin toll could be pushed lower in the short term. A pseudonymous marketplace analyst called 'CryptoHamster' shared a similar bearish outlook based on analyzing a technical design called an ascending aqueduct.

Surly news coming from commutation regulation could take also diminished investors' interest, and this week the Britain'due south Financial Comport Authority (FCA) released a supervisory detect against Binance exchange.

According to this calendar week's regulatory activity, the exchange was asked to take down its live advertisements and promotions on Binance's website and social media.

A bullish trend can exist seen in futures markets

To assess whether professional traders became pessimistic, analysts should monitor the futures premium, also known as 'footing.' This indicator measures the price gap betwixt futures prices and the regular spot market.

The one-month contract should trade with a 6% to xiv% annualized premium in healthy markets considering sellers demand a higher price to postpone settlement, creating a toll difference.

Huobi 1-calendar month futures ground. Source: Skew

Notice how the indicator has improved from a neutral-to-surly 4% annualized premium on Aug. 19 to a more salubrious 9% level. This shows that the metric is moving in the opposite direction of the zone, which would be considered bearish.

The acme traders long-to-short ratio is still optimistic

To effectively measure how professional traders are positioned, investors should monitor the top traders' long-to-short ratio at leading crypto exchanges. This metric provides a broader view of the traders' effective cyberspace position by gathering data from multiple markets.

Top traders BTC long/curt ratio. Source: Bybt.com

It is worth noting that exchanges gather data on top traders differently considering in that location are multiple ways to measure a clients' cyberspace exposure. Therefore, any comparing between dissimilar providers should exist made on percentage changes instead of accented numbers.

Both OKEx and Huobi displayed an increase in the height traders' long-to-short ratio, indicating that either they closed short positions or opened long ones, which is a bullish move. Binance was the only exception because the indicator dropped, indicating some cynicism, just the variation over the past couple of days has been insignificant.

Options markets are slightly bullish

The 25% delta skew compares similar call (buy) and put (sell) options side-past-side. It volition turn positive when the protective put options premium is higher than like adventure phone call options.

The opposite holds when market makers are bullish, and this causes the 25% delta skew indicator to enter the negative range.

Deribit Bitcoin options 25% delta skew. Source: laevitas.ch

The higher up chart shows that there had been some bearishness ahead of July 19, merely Bitcoin options markets have flipped neutral since then. Moreover, there are no signs that professional traders are growing worried virtually a potential price drop because the 25% skew indicator remains almost goose egg.

Both futures and options markets prove confidence from investors despite the worrisome technical analysis and shaky regulatory scenario.

Consequently, at least according to derivatives markets, dips are for buying.

The views and opinions expressed hither are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading motility involves risk. Yous should bear your own enquiry when making a decision.