Rapid Amount of Shorts Coming After Bitcoin’s Huge Fall?

Rapid Amount of Shorts Coming After Bitcoin’s Huge Fall?

For the first time since July of last year, Bitcoin (BTC) fell below $30,000. Technical signs point to a price range of $27,000 to $30,000 as support, which would be the bottom of a year-long average price. Still, given the negative trend on the daily, weekly, and monthly charts, BTC is at risk of further breaks, similar to what happened during the crypto bear market of 2018.

Funding rate data shows a substantial quantity of shorts are flowing in just after BTC dropped under $30k for the very first time in roughly a year, according to Santiment, an on-chain data source.

Bitcoin whales have been transferring enormous amounts of BTC on exchanges, according to on-chain data. According to CryptoQuant, BTC inflows across all exchanges have reached a one-year high. Inflows into the spot market have also reached a two-year high.

According to Santiment’s on-chain data, over 40K BTC were transferred to exchange platforms on Monday, the greatest single-day inflow since December 2019. Santiment observed that Monday’s final trading hour (UTC time) marked a watershed moment in the net Bitcoin movement to exchanges. The net inflow of 40,620 $BTC today is the most since December of this year. This is the pinnacle of crowd polarization.

Other metrics indicate that sellers have yet to capitulate. According to CoinDesk data, bitcoin’s volume has increased slightly in the last 24 hours but is still behind its January 24 peak. Some analysts believe BTC will finally settle at a lower price, with some predicting a range of $24,000 to $27,000.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Jai Hamid

CoinCu News