BTC Bitfinex Spot Premium
Bitfinex dominance relative to the other most relevant spot markets.
It compares the price of the Bitfinex BTC/USD market to a volume weighted index of spot exchanges.
Positive values (green) means Bitfinex is trading at a premium, which means Bitfinex is more bullish than the rest of the market.
Negative values (red) means Bitfinex is trading at a discount, which means Bitfinex is more bearish than the rest of the market.
Bitfinex has been considered an exchange of "smart money" for a while.
When they're bullish (trading at a premium) it's usually a good sign, as in "bullish".
They often trade at a premium though. The few times they don't is usually a pretty good warning sign that a retrace might happen.
Because of this the sell signals tend to be better and more clear than the buy signals.
It's best not to use this indicator on its own but to use it for confluence.
For example: if price rallied quite a bit and this indicator shows that Bitfinex is becoming less bullish (red) then that's pretty good confirmation that price might be topping out.
Big money on Bitfinex has a more long term view on the market, therefore this indicator is more suited for higher time frame trading.
The 4H is in my experience ideal.
The markets used for the spot index:
For access to this indicator send me a personal message.
It compares the price of the Bitfinex BTC/USD market to a volume weighted index of spot exchanges.
Positive values (green) means Bitfinex is trading at a premium, which means Bitfinex is more bullish than the rest of the market.
Negative values (red) means Bitfinex is trading at a discount, which means Bitfinex is more bearish than the rest of the market.
Bitfinex has been considered an exchange of "smart money" for a while.
When they're bullish (trading at a premium) it's usually a good sign, as in "bullish".
They often trade at a premium though. The few times they don't is usually a pretty good warning sign that a retrace might happen.
Because of this the sell signals tend to be better and more clear than the buy signals.
It's best not to use this indicator on its own but to use it for confluence.
For example: if price rallied quite a bit and this indicator shows that Bitfinex is becoming less bullish (red) then that's pretty good confirmation that price might be topping out.
Big money on Bitfinex has a more long term view on the market, therefore this indicator is more suited for higher time frame trading.
The 4H is in my experience ideal.
The markets used for the spot index:
- Coinbase USD
- Bitstamp USD
- Gemini USD
- Binance USDT
- Huobi USDT
- Okex USDT
- Kraken USD
- FTX USD
For access to this indicator send me a personal message.
Release Notes:
Increased precision.