Topic: First I have seen this on BitFinex, a Bear market. (Read 873 times)
Yes, the BSI is calculated by the open positions. The ratio is just an approximation, but is pretty close.
There's more USD/BTC available to borrow than I've ever seen. No one is taking positions. Everyone is sat on the fence waiting for something to happen.
Every time you borrow BTC at a high interest rate an angel gets their wings.
There's more USD/BTC available to borrow than I've ever seen. No one is taking positions. Everyone is sat on the fence waiting for something to happen.
Quote
Our Bitfinex Sentiment Index allows you to see what the market currently feels like, bullish or bearish. It is based on market participants sentiment.
BSI as of May 09, 2013 - 04:02:19 PM CDT:
1:1 - Bearish
Bitfinex Irrational Index
This index analyzes user behavior on the market and reflects their coherence and commitment to make profit
Irrational Index for Bear: 85.5
Irrational Index for Bull: 59.4
BSI as of May 09, 2013 - 04:02:19 PM CDT:
1:1 - Bearish
Bitfinex Irrational Index
This index analyzes user behavior on the market and reflects their coherence and commitment to make profit
Irrational Index for Bear: 85.5
Irrational Index for Bull: 59.4
I am not sure of the exact formula to come up with these numbers but it has been Bullish ever since I have been checking it before the big crash.
My assumption is that the formula has something to do with the amount of longs vs the amount of shorts on the website. So currently there are a lot of people with shorts out on margin.
From my observation, it is usually the most bearish closest to the low. This is the most bearish I have seen.
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