Bitcoin (BTC) bounced back to the support level of $ 51,000 in the last 44 days. This is often described as positive facts, especially considering that in 2021 the 50,000 level represents 75% advance.
However, cryptocurrency investors focus on the short term and are always optimistic. So the current bitcoin narrative is slowly turning down, but regardless of emotion, what stories does the basics tell?
However, the set of 1.5 billion options, set for April 23, is likely to be the root of the recent downturn. As Cointelegraph stated earlier, the Bears have a फायदा 340 million profit of less than $ 57,000. It also explains why traders have played a neutral role despite the 18% decline in the last eight days.
On the other hand, some analysts, such as Willie Wu, said that the Chinese coal mine accident caused a big drop in the bitcoin hash rate. Combined with the shutdown in China’s Xinjiang, this incident would have reduced the processing power of the Bitcoin network by 1%% and highlighted its dependence on coal-fired power generation.
Critics jumped at the chance to crush Bitcoin, while Coin Matrix co-founder Nick Carter discreetly refuted some of the main allegations. Bitcoin mining, which is relatively portable, is concentrated in areas where electricity is not used and is cheap, Carter said.
Also, while the gold industry is environmentally destructive and dependent on diesel energy, Bitcoin can be fully utilized with clean energy. Unlike precious metals, the transfer of bitcoin miners allows the use of previously wasted gas and oil resources.
In any case, traders did not add transactions during the recent BTC price correction.
Commercial merchants do not sell, but they do not buy at any price level
Major cryptocurrency exchanges provide data on the locations of large long- or short-term operators. This indicator is calculated by analyzing clients’ standards, margins and futures positions. Doing so provides a clear idea of whether these commercial traders are leaning towards advantage or disadvantage.
It is important to note that systematic discrepancies are sometimes found in different exchanges, so changes should be monitored rather than absolute numbers.
Bitcoin is a long or short quantity. Source: Bybit
The chart above shows that large traders have increased their exposure between April 14 and 17, while Bitcoin is priced at $ 60,000. Whales and referee boards, on the other hand, have remained relatively flat over the past five days.
It should be noted that the current level along the length in OKX is below the level of 1.75 on April 17. These figures show that major traders have narrowed their position in the last five days.
On April 1, a similar trend emerged in the business, with traders selling a total of 1,225 properties. Despite the preference for long positions, the current 1.18 index is in the lower range of the last three weeks.
Finally, Hubby’s major retailers added long positions between April 14 and 18, but the ratio remained at 0.90.
Therefore, there is no doubt that Whale and the arbitration offices do not add to their long positions, yet BTC proves support of 52 52,000, with a 20% decline from the April 14 peak.
However, investors are advised to wait for the option to expire on Friday before reaching a quick conclusion.