According to analysts at Bitfinex, Bitcoin traders are showing cautious optimism as they refrain from “substantial short positions” in anticipation of continued price increases. Alpha report.
Despite Bitcoin’s notable rise, which allowed its value to trade above $52,000 for the first time since 2021, analysts are seeing a decline in the short-squeeze ratio compared to previous years. The reason behind this declining short squeeze ratio is revealed in the report.
Whales avoid short positions amid bullish sentiment
Analysts at Bitfinex Alpha report that major whale investors are refraining from “substantial short positions” due to their belief that prices will only continue to rise.
Current market conditions are characterized by “tightening supply and increasing demand,” further supporting bullish sentiment among traders.
According to the Bitfinex Alpha report, the behavior of Bitcoin holders indicates the emergence of early bull market conditions. This is evidenced by a decrease in the volume of supply 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 near-term price trajectory. The report noted:
Currently, less than 6% of the total supply of long-term holders of individual entities is at a loss. Historically, similar instances where the long-term holders’ cohort had a similar volume of Bitcoin at a loss are indicative of early bull market conditions.
Bitcoin trajectory and investor sentiment
Over the past 24 hours, Bitcoin has experienced a slight retracement of almost 2%, following a week-long uptrend that took the price above $52,000 for the first time since 2021. Despite this retrace, investors remain optimistic, with continued asset accumulation. amid bullish forecasts 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 $100,000 in June 2024.
— Robert Kiyosaki (@theRealKiyosaki) February 18, 2024
Furthermore, the recent whale activity in the Bitcoin market has caught the attention of analysts and investors alike. Crypto analyst Ali Martinez recently revealed that a specific class of Bitcoin investors, who own between 1,000 and 10,000 BTC, have been accumulating 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 past three weeks, equivalent to a significant $6.16 billion.
#Bitcoin whales have been busy buying whales and have acquired 140,000 $BTC in the last three weeks, which amounts to $6.16 billion! 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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