$HOT This 15m candle’s drop isn’t especially dramatic at -3.69%, but the OI move is: 15m futures OI is down 5.69%, 1h is down 6.95%, and notional value plunged by 1.35M in one go. Its anomaly percentile is 99.2%, the highest across the entire pool.
Price down + OI down looks more like longs deleveraging and stopping out than new shorts entering to drive the price lower. Volume is up to 3.95x, the buy/sell ratio is 0.95, and the aggressive trade imbalance is -2.4%. There is selling pressure, but it’s not one-sided.
With this kind of structure, I usually don’t rush to buy the dip. First, I’d watch to see whether OI can stabilize. We can talk about a rebound once the longs have been flushed out; for now, that process is still underway.
Price down + OI down looks more like longs deleveraging and stopping out than new shorts entering to drive the price lower. Volume is up to 3.95x, the buy/sell ratio is 0.95, and the aggressive trade imbalance is -2.4%. There is selling pressure, but it’s not one-sided.
With this kind of structure, I usually don’t rush to buy the dip. First, I’d watch to see whether OI can stabilize. We can talk about a rebound once the longs have been flushed out; for now, that process is still underway.
