• Bitcoin [BTC] traders seem unperturbed about the king coin’s drop below $22,000, with traders in the derivatives market still keen on opening long positions.
• CryptoQuant’s Bull/Bear Market Cycle Indicator remains in the bull territory and a positive funding rate implies that long-positioned traders are dominant.
• Low sell pressure from whales combined with miners‘ BTC transfers to exchanges earlier in the month point to selling pressure linked to huge amounts of the coin.
Bitcoin Traders Taking Long Positions Despite Bearish Exposure
Despite sustained decline in Bitcoin’s price, traders are preferring to take a long position. This is due to whales’ action which could trigger a bull trend but short liquidations remain at a minimum.
CryptoQuant’s Bull/Bear Market Cycle Indicator
According to CryptoQuant’s evaluation of the market, the surprising positive sentiment could be linked to the Bull/Bear Market Cycle Indicator. The metric is characterized by aggregate view of daily market participants and often corresponds with economic cycle. Although BTC’s price might not reflect it, CryptoQuant confirmed that it is now in bullish domain.
Funding Rates And Whales Activity
Traders’ bias has also translated into action as evidenced by Funding Rates; periodic payments made to longs or shorts based on difference between perpetual swaps and current spot prices. At press time, BTC funding rate was 0.0018 indicating preference for long positions over short ones from traders. Additionally, bitcoin whales appear to be helping cause as their usual spending during correction periods has been low compared to previous cycles; spending below 150K BTC daily instead of 500k previously seen during corrections or before them according to CryptoQuant report.
Selling Pressure Linked To Huge Amount Of Coins
Despite optimism projected from traders this won’t automatically wash away reds as latest BTC correction correlated with miners and Short Term Holders (STH) activities such as Miners‘ BTC transfers which points towards selling pressure linked with huge amount of coins accordingto CryptoQuant report .
