Bitcoin (BTC) is up 25% after Tesla’s $ 1.5 billion investment in BTC was revealed this week. Prior to this revelation, BTC was stuck at 7.5% Ether (ETH), but several bullish events in recent days have helped BTC hit record highs of $ 48,900.
Prior to Tesla’s announcement, the bitcoin price had been in the $ 30,000 to $ 41,500 range for about 3 weeks, and when the price fell, professional traders and arbitrage agencies were expected to follow suit.
Instead of a long flop, many of the best traders went short when BTC started Step 25. This seems risky given that Bitcoin has received praise from the JPMorgan co-chairman this week and regulators have approved the approval of the BTC ETF in Canada.
Historical data shows that Bitcoin price trades tend to trade with Ether, which has been highly optimistic for several months. In addition to this bullish scenario, the Bitcoins Lightning Network announced a contract with a total closed value (TVL) of over $ 42 million.
Mastercard also announced that it will support online cryptocurrency payments by the end of 2021.
These bullish signals contrast with the long-term and short-term position measurements provided by major cryptocurrency exchanges.
This indicator is calculated by analyzing the client’s consolidated spot position, permanent and futures contracts, and gives a clearer picture of whether professional traders are leaning upward or downward.
It is important to note that there are sporadic differences in methodology between different centers, so viewers should look for changes rather than absolute numbers.
Since February 8, when Tesla was announced, major stock brokers have kept their net positions relatively unchanged.
Before Bitcoin rallied 25%, Binance had a 1.33 ratio in favor of long, which is in line with last week’s performance. The index peaked at 1.53 on February 10, but has since returned to 1.31.
On the other hand, major traders on Huobi had a 0.74 index until February 8, which remained unchanged for three days. On February 11, when BTC surged from $ 44,000 to $ 48,000, these traders began to increase their net long positions, reaching their current 0.80. While this level is still favored by the 20% net card positions, it is still above the 0.75 level since January 29.
Finally, leading retailers OKEx had a net buying position of 14% prior to the news on Tesla. While they returned to a net position of 47% on the same day, the index has returned to 1.03 over the past four days. Currently, OKEx traders’ net buy position is still well below its 52% net position two weeks ago.
This can be very attractive to top traders.
Large traders have also been able to transfer bitcoins from the stock market in search of better return opportunities. Assuming that they only reached short positions by observing central exchanges, this could be a quick result of reaching them.
Currently, the buy and sell index does not reflect the extreme net positions of arbitration agencies, marketers and whales. The equilibrium derivatives market indicates that there is a lot of buying activity if BTC continues to rise to $ 50,000 or more.