What’s going on? Bitcoin is showing a large negative premium. Is this a sign that institutions are selling or buying? Let’s take a look.
1. As shown in the chart, Bitcoin has printed several consecutive negative-premium bars. This indicates that retail investors are selling aggressively or being stopped out. So the question is: should we sell everything and wait on the sidelines, or is it time to buy the dip?
2. Without a doubt, this is a buy signal! If you compare the data closely, you’ll see that these deeply negative premiums tend to appear near market bottoms, making them relatively good buying opportunities. Then, when the price rebounds into the green, positive-premium range and retail investors become overbought and chase the rally, that’s actually when you should start selling gradually.
3. This indicator isn’t 100% accurate, but it works 80–90% of the time. So what to do right now is pretty clear: buy on dips. It’s not time to sell yet. We can wait until the premium turns positive or the RSI becomes overbought before trying to get out near the top. That’s why we got out near Bitcoin’s $87,000 level earlier. Looking back now, we really did sell at a relatively high price.
4. Shu Qin also wants to share some good news with everyone. As shown in Chart 2, you’ve probably noticed that my live futures trading account has reached No. 38 on Binance’s leaderboard, up 30 places from No. 68 in July. So clearly, we’re not only outperforming the market—we’re even outperforming smart money! So what did I do right this time?
5. I think the main thing that gave us an edge was selling all those short-term coins near $87,000, especially CRCL and Pengu. I shared those trades with you at the time. We’re now gradually buying them back, while continuing to hold our long-term positions. This back-and-forth has helped us climb even higher in the rankings. And congratulations to everyone who followed along—Shu Qin didn’t let you down!
1. As shown in the chart, Bitcoin has printed several consecutive negative-premium bars. This indicates that retail investors are selling aggressively or being stopped out. So the question is: should we sell everything and wait on the sidelines, or is it time to buy the dip?
2. Without a doubt, this is a buy signal! If you compare the data closely, you’ll see that these deeply negative premiums tend to appear near market bottoms, making them relatively good buying opportunities. Then, when the price rebounds into the green, positive-premium range and retail investors become overbought and chase the rally, that’s actually when you should start selling gradually.
3. This indicator isn’t 100% accurate, but it works 80–90% of the time. So what to do right now is pretty clear: buy on dips. It’s not time to sell yet. We can wait until the premium turns positive or the RSI becomes overbought before trying to get out near the top. That’s why we got out near Bitcoin’s $87,000 level earlier. Looking back now, we really did sell at a relatively high price.
4. Shu Qin also wants to share some good news with everyone. As shown in Chart 2, you’ve probably noticed that my live futures trading account has reached No. 38 on Binance’s leaderboard, up 30 places from No. 68 in July. So clearly, we’re not only outperforming the market—we’re even outperforming smart money! So what did I do right this time?
5. I think the main thing that gave us an edge was selling all those short-term coins near $87,000, especially CRCL and Pengu. I shared those trades with you at the time. We’re now gradually buying them back, while continuing to hold our long-term positions. This back-and-forth has helped us climb even higher in the rankings. And congratulations to everyone who followed along—Shu Qin didn’t let you down!