bitcoin traders are showing cautious optimism as they refrain from “substantial short positions,” expecting continued price increases, according to Bitfinex analysts this week. Alpha report.
Despite bitcoin's notable rise that saw the asset trade above $52,000 for the first time since 2021, analysts are seeing a decline in the rate of short squeezes compared to previous years. The reason behind this decline in short squeeze ratio is revealed in the report.
Whales avoid short positions amid bullish sentiment
Bitfinex Alpha analysts report that large whale investors are refraining from “substantial short positions” due to their belief that prices will continue to rise.
Current market conditions are characterized by “tightening 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 a reduction in supply volume from long-term holders experiencing losses, a trend that correlates with the continued rise in the asset's price.
This observation suggests a positive outlook for bitcoin's price trajectory in the near term. The report noted:
Currently, less than 6% of the aggregate supply of long-term holders by individual entities remains at a loss. Historically, similar cases where the cohort of long-term holders had a comparable volume of bitcoin in losses have been indicative of early bull market conditions.
bitcoin Trajectory and Investor Sentiment
In the last 24 hours, bitcoin has seen a slight pullback of almost 2%, following a week-long bullish trend that pushed its price to trade above $52,000 for the first time since 2021. Despite this pullback, the Investors remain optimistic, with asset accumulation underway. amid bullish predictions from 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 to $100K by June 2024.
—Robert Kiyosaki (@theRealKiyosaki) February 18, 2024
Furthermore, recent whale activity in the bitcoin market has caught the attention of both analysts and investors. crypto analyst Ali Martínez recently revealed that a specific class of bitcoin investors, holding between 1,000 and 10,000 btc, have accumulated the digital asset in recent weeks.
Data from on-chain analytics firm Santiment shows that whales in this category have added more than 140,000 coins to their holdings in the last three weeks, equivalent to a substantial $6.16 billion.
bitcoin?src=hash&ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>#bitcoin The whales have been buying frantically, acquiring 140,000 $btc in the last three weeks, for a total of 6.16 billion dollars! 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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