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.
Whales avoid short positions amid bullish mood
Analysts at Bitfinex Alpha report that large whale investors are refraining from “significant 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.
Bitcoin will reach $100,000 by June 2024.
— Robert Kiyosaki (@theRealKiyosaki) February 18, 2024
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.
#bitcoin Whales continue to go on a buying spree and have acquired 140,000 whales. $BTC Over the past three weeks, that total has reached $6.16 billion. pic.twitter.com/ViRnYiJHmp
— Ali (@ali_charts) February 10, 2024
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
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