Analysis: The tendency of traders to short is gradually weakening, and the market is expected to welcome a rebound

ChainCatcher message, on-chain data analyst Murphy released a market analysis indicating that the perpetual contract volume difference (VDB) measures the short-term trend (30-day average) of the buying and selling power difference in the recent futures market relative to a longer-term market benchmark (90-day median). This is used to determine whether the current market is bullish or bearish, and to observe whether this power is strengthening.

Since early August, the VDB on Binance and other trading platforms has fallen into negative territory, indicating that perpetual contract traders—who are a more speculative group in this market—have increasingly developed a bearish tendency in the subsequent periods. However, this indicator is highly volatile, so a comparison of "short-term" and "mid-term" is used to observe the direction and degree of the shift, in order to confirm whether this negative tendency will develop into a sustained trend.

The current trend of VDB has begun to gradually reverse, indicating that bullish sentiment is recovering and traders' bearish tendencies are gradually weakening. Based on past data, if this trend continues, the market is expected to experience a rebound. This analysis is for learning and communication purposes only and should not be considered as investment advice.