Bitcoin Short-sellers have taken a beating in the last two days. This is according to data presented by crypto derivatives analytics website coinglass.com, which shows liquidations in a nutshell Bitcoin approximately $100 million worth of futures positions on major exchanges during the past two sessions, during which time Bitcoin has achieved an impressive 8.5%.
At the current level in the $24,100 area, Bitcoin Trading up 13% from the lowest monthly low of $21,000. Bearish call for last week Bitcoin Drawback to the $20,000 level ultimately proved wrong Bitcoin Instead it managed to reach a new June 2022 high of $25,270 on Thursday. It is reported that the two largest mount gox Creditors will receive most of their payments in BTC instead of fiat, which led to an uptick on Thursday.
Mt Gox was one of the earliest bitcoin exchanges, but a hack back in 2014 resulted in the loss of most of its funds, causing the exchange to fold, creditors have since been engaged in lengthy asset recovery proceedings. Gox-fuelled intra-day rally, however, was short-lived and it seems to have caught out some short-term bullish speculators betting on a push to the upper $25,000, as evidenced by a spike in liquidation of long positions on Thursday.
According to CoinGlass.com, nearly $35 million worth of long positions were liquidated on Thursday, after only $5 million of long positions were liquidated on Wednesday. Taking profits in the wake of the recent rally and stopping from those who turned overly aggressive could send bitcoin back below $24,000.
Bulls remain in control in the near term
But the recent resurgence from the previous weekly lows means that bitcoin is still up nearly 45% this year, despite now being back about 5.0% from last session’s highs. Bulls remain in the driving seat despite the US dollar rallying in recent weeks and US bond yields rising higher/higher on expectations of additional interest rate hikes from the Fed this year.Hotter than expected US data release,
Some analysts say that the reason why bitcoin has done so well in 2023 is because it sold heavily after the collapse of bitcoin last year. ftx, Others say bitcoin is doing well even as more Fed interest rate hikes are expected, an end to the hiking cycle and an improved macro environment in sight. others point to different technology And on-chain metricsAs bitcoin recently rallied above its 200DMA and real value, improve network activity, Improving the profitability of the bitcoin market and “weak arm” seller exhaustion as all suggest that the worst of the 2022 bear market is now behind us.
Upside price risk remains despite looming macro risks
Traders will be monitoring US Flash Services PMI data, GDP data and Core PCE inflation data, as well as minutes of the Fed’s latest meeting next week, in which macro traders will monitor US growth, inflation and monetary policy outlook. But bitcoin and the wider crypto market have been remarkably resilient to what would normally be interpreted as macro headwinds.
Price risk may remain tilted to the upside in the short term, although, in fairness, this is not the message being sent by the bitcoin options markets. According to The Block, bitcoin 25% delta options expiring in 7, 30, 60, 90 and 180 days are currently trading around zero, suggesting that investors are placing roughly equal premiums on the respective put and call options.
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