Analysis: The difference in contract long and short trading volumes has reversed, and traders' short-selling tendency is gradually weakening

BlockBeats News, on September 8, on-chain data analyst Murphy released a market analysis stating that the Volume Delta Balance (VDB) of perpetual contracts measures the short-term trend (30-day average) of the difference in buying and selling power in the recent futures market relative to the longer-term market benchmark (90-day median), in order to determine whether the current market is more bullish or bearish, and to observe whether this force is strengthening.

Since early August, the VDB of a certain exchange and other trading platforms has dropped into negative territory, indicating that perpetual contract traders—a highly speculative group in the market—have shown an increasing tendency to go short during this period. However, this indicator is highly volatile, so comparing the "short-term" and "mid-term" helps to observe the direction and degree of deviation, in order to confirm whether this negative tendency will develop into a sustained trend (as shown by the red arrow in the chart).

The current trend of VDB has begun to gradually reverse (as shown by the green arrow in the chart), indicating that bullish sentiment is recovering and traders' inclination to go short is gradually weakening. According to past data, if this trend continues, the market is likely to see a rebound. This analysis is for educational and communication purposes only and does not constitute investment advice.