XyonEnT ∞ AutoXyon 🏎️ Amazon | CryptoXyon πŸͺ™ InvestXyon πŸ’° Walmart | NovaXyon 🌟 XyonPaw 🐾 Sofia Gray | ZenXyon πŸ§˜β€β™‚οΈ

Bitcoin whales avoid large short positions, show confidence in rising price – investxyon
Friday, April 19, 2024
Home Cryptocurrency Bitcoin whales avoid large short positions, show confidence in rising price

Bitcoin whales avoid large short positions, show confidence in rising price

by xyonent
0 comment
Todd Cravens Qnbrjy Nfus Unsplash 2.jpg

Analysts at Bitfinex said this week that Bitcoin traders are expressing cautious optimism, refraining from “significant short positions” in hopes that the price rally will continue. alpha report.

Despite Bitcoin’s notable surge to trade above $52,000 for the first time since 2021, analysts note a decline in the short squeeze rate compared to a year ago. . The reason behind this decline in the short squeeze rate is revealed in the report.

BTC short squeeze ratio vs price. | Source: Bitfinex Alpha Report

Whales avoid short positions amid bullish mood

Analysts at Bitfinex Alpha report that large whale investors are refraining from β€œsignificant short positions” as they believe prices will continue to rise further.

Current market conditions are characterized by “tight supply and rising demand,” further supporting bullish sentiment among traders.

According to the Bitfinex Alpha report, the behavior of Bitcoin holders suggests the emergence of early bull market conditions. This is evidenced by the decreasing supply of long-term holders who have suffered losses, and this trend correlates with the continued rise in asset prices.

This observation suggests a positive outlook for Bitcoin’s price trajectory in the short term. The report states:

Currently, less than 6% of total long-term holder supply by individual companies is in losses. Historically, similar instances in which a group of long-term holders lost a similar amount of Bitcoin are indicative of early bull market conditions.

Bitcoin trajectory and investor psychology

Bitcoin experienced a slight retracement of nearly 2% over the past 24 hours, following a week-long uptrend that saw its price trade above $52,000 for the first time since 2021. Despite this retrace, investors remain optimistic and continue to accumulate assets. Amid bullish predictions by analysts and experts.

Renowned financial guru Robert Kiyosaki recently made headlines with his bold prediction that Bitcoin will reach $100,000 by June 2024, further fueling optimism in the crypto community.

Additionally, recent whale activity in the Bitcoin market has attracted the attention of both analysts and investors. Crypto analyst Ali Martinez recently revealed that a certain segment of Bitcoin investors holding between 1,000 and 10,000 BTC have been accumulating digital assets in recent weeks.

Whales in this category have added more than 140,000 coins to their holdings in the past three weeks, worth $6.16 billion, according to data from on-chain analytics firm Santiment.

This accumulation trend among whales reflects confidence in Bitcoin’s long-term potential and is a positive indicator of its future price trajectory.

Featured image from Unsplash, chart from TradingView

Disclaimer: This article is provided for educational purposes only. This does not represent NewsBTC’s opinion on whether to buy, sell, or hold an investment, and investing naturally involves risk. We recommend that you do your own research before making any investment decisions. Your use of the information provided on this website is entirely at your own risk.

You may also like

Leave a Comment

About Us

Investxyon

At InvestXyon, we empower individuals with knowledge for informed investing, financial navigation, and secure futures. Our trusted platform covers investments, stocks, personal finance, retirement, and more.

Feature Posts

Newsletter

Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!