According to the latest data, many of the pro traders have not been purchasing Bitcoin despite the ongoing decline in prices. On the other hand, the options for $1.55 billion are about to expire tomorrow.
For the last 44 days, Bitcoin has been looming around the support level of $51,000. Usually, this indicates that there is a positive rally soon coming especially owing to the reason that the mark of $50,000 suggests an advance of 75% in 2021.
Bulls Unwilling To Buy Bitcoin As Prices Dive
Despite the Bitcoin price dive, the cryptocurrency investors are focused on the short-term and showing great optimism. As a result, the ongoing narrative for BTC is gradually slowing down and becoming bearish in the pattern.
This trend reveals the possibility that this decline in price might have been caused by the impending expiry of the options of $1.55 billion scheduled on 23rd April. According to the reports of Cointelegraph, bears might have an advantage of $340 million under $57,000. This suggests why the pro traders have maintained a neutral stance even though the BTC price dropped 18% during the last 8 days.
Willy Woo, the crypto analyst, believes that the coal mining incident in China might have pulled down the hash rate of BTC. Additionally, the power outage in the Xinjiang region in China might the responsible for the 19% decrease in the processing power in the BTC network. It might have also exposed the heavy reliance on coal-based energy.
Important crypto exchanges have reported that the leading traders’ net positioning is ‘long to short’. This is calculated through client analysis of spot, futures contracts, and margin. This provides a clear picture of professional traders being bearish or bullish.
Nevertheless, investors are advised to wait till the options expiry on Friday before taking hasty actions.
