Derivatives data contradicts traders’ belief that greater Bitcoin declines are imminent by showing higher demand for leverage longs.
After the 2nd-biggest cryptocurrency exchange, FTX, stopped accepting transactions, investors hurried to sell their holdings in BTC, which dropped 25.4% in 2 days and hit a low of fifteen thousand five hundred ninety dollars on Nov. 9. More significantly, the sub-$17k levels hadn’t been seen in over 2 years, and the threat of spread was now clear.
The action eliminated leveraged long (bull) bets of $285 mn, prompting some investors to forecast a probable fall of $13.8k.
According to Jaydee 757, an unbiased market expert, the negative trend is still in force with $17.2k acting as a barrier. However, such a study does not certain that the eventual low of $13.8k will be reached.
Bitcoin Deivatives Data Reflected Traders’ Mixed Feelings:
Oddly, the price movement occurred at the same time as strengthening circumstances for the global equities markets on October 4, even as tech-heavy Nasdaq gained 9.5% as well as the S&p 500 rose 6.4% during November 10 and November 11. As a result, at particularly from a technological standpoint, Bitcoin totally disconnected from conventional finance.
Grayscale BTCs Trust stocks trading on an over stock exchanges just after $11.4 bn fund markdown to its holdings exceeded 40% have added to the uncertainties around Bitcoin.
The estimated BTC price, as highlighted by Spencer, is less than $9k based on the fund’ activity, and pressure could increase if some owners use the holdings as security for loans.
Nevertheless, the negative attitude that led to Bitcoin’s price dropping below $20k does not necessarily indicate that investment managers are pessimistic at the moment.
Investors may borrow BTC to amplify their trading by keeping an eye on the derivatives and margin markets, which offer wonderful insight into just how experienced traders were positioned.
