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Let's explain the usage of the order book alert in the trading strategy signal channel with an example:
Figure 1: Divergence between spot and futures markets: Yesterday, around 905, the spot market alerted for a large sell order, while the futures market alerted for a large buy order. This inconsistency indicates a divergence in capital flows, and it's best to remain on the sidelines.
The actual reason is that yesterday, there was indeed a sell order of 100 million on the Bybit spot market that was pending and eventually filled, causing the spot market to alert for a sell order. As for why this 100 million sell order suddenly appeared on Bybit, it's difficult to know the underlying reason. Therefore, it's best to remain on the sidelines for now.
Figure 2: Spot and Futures Trading in Sync: When the price reached above 94 in the early morning, both spot and futures trading showed sell signals simultaneously. This is a situation of synchronized movement. Historically, unless there's a strong trend, this price action usually encounters resistance and falls back, presenting an opportunity to enter the market.
For futures traders, regardless of the price level, there will be both long and short positions. Relatively astute traders often enter later in the day, at key levels, meaning they can find a reasonable entry point.