Analysis: The bearish sentiment of traders is gradually weakening, and the market is expected to see a rebound.
BlockBeats News, September 8th, on-chain data analyst Murphy released a market analysis stating that the Volume Delta Balance (VDB) of perpetual contracts measures the recent futures market, the short-term trend of the buy/sell power delta (30-day moving average) relative to a longer-term market baseline (90-day median) to assess whether the current market is biased to the long side or short side, and to observe whether this power is strengthening.
Since early August, Binance and other trading platforms' VDB has dropped into negative territory, indicating that perpetual contract traders— a speculative group in this market— have increasingly shown a bearish inclination in the subsequent period. However, this indicator has extremely high volatility, so a comparison between "short-term" and "mid-term" is used to observe the direction and magnitude of the deviation to confirm whether this negative bias will develop into a sustained trend (red arrow in the chart).
The current trend of VDB is gradually reversing (green arrow in the chart), indicating that bullish sentiment is recovering, and traders' bearish inclination is weakening. Based on historical data, if this trend continues, the market is expected to usher in a rebound rally. This analysis is for educational purposes only and should not be considered as investment advice.
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