Crypto dealers buy Bitcoin (BTC) on Kraken, one of the 10 largest cryptocurrency exchanges as the price slides to a three-month low, Alexia Theodorou, head of derivatives for Coindesk.

BTC fell under $ 88,000 shortly before the announcement, when Nasdaq-Futures pointed to continued risk aidation on Wall Street, and Yen, a refuge in times of turmoil, kept strong against the US dollar and growth-sensitive raw material currency such as the Australian dollar.

The BTC meager follows an increase of $ 1 billion in open futures position on Binance late Monday, probably due to dealers taking shorts in anticipation of a deeper price drop.

However, negotiating hunters have entered via Kraken and lifted the eternal long short relationship with a record high 0.8. The relationship measures the proportion of purchase positions that are open in relation to active sales positions at all times.

“Despite Bitcoin’s price falling below $ 90,000, Kraken has seen an increase in dealers opening long positions in his BTC evil markets,” Theodorou said in an interview. “The long/short relationship has risen to a record height of ~ 0.8, while open interest has reached a four-week height. This suggests that dealers could predict a rebound and effectively ‘buying dip.'”

While evidence of DIP demand for the krake is an encouraging sign for the bulls, the long-card remains the ratio below 1, which means there are still more shorts than a long time on the stock exchange.

“While this [record long-short ratio] Speaking with the underlying positive mood on the market, liquidations are still at relatively normal levels, which means that there may still be excess leverage in the system. This can potentially leave the market vulnerable to further downward movements, possibly in the form of a long terminal, in the short term, “Theodorou said.