Posted:
- Bitcoin’s recent price surge caused a rise in long-term pressure, signaling changing market dynamics.
- The put-to-call ratio for Bitcoin indicated bearish sentiment among traders.
Bitcoin in recent days [BTC] The price showed signs of bullish momentum, providing a ray of hope for its holders. However, despite the price increase, the long positions were liquidated.
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Long positions continue to suffer
According to CryptoQuant’s analyst SignalQuant, a ‘long squeeze’ occurred as Bitcoin prices rose. This event is characterized by investors who take long positions deciding to sell their holdings to minimize losses during a bearish market.
It is essentially a defensive move by traders who bet on rising prices but are forced to sell when the market goes south.
It is striking that there was an increase in the number of long squeezes last month, in contrast to the scarcity of short squeezes. A ‘short squeeze’ is a situation in which investors with short positions are forced to buy to minimize their losses during a bullish market.
The recent rise in long squeezes suggested that abrupt short squeezes could become more common in the still-uncertain crypto market. This evolving landscape has potential implications for Bitcoin’s future price movements.
Source: Cryptoquant
Another crucial aspect to consider is the Put to Call ratio. It is a metric used to measure market sentiment by comparing the number of put options (which allow selling) versus call options (which allow buying). The rising Put to Call ratio could indicate a shift in market sentiment or a hedging strategy being adopted by traders.
Additionally, Bitcoin’s open interest, a metric that measures the total value of outstanding futures contracts, increased. This indicates a growing interest in Bitcoin derivatives trading despite market fluctuations.
Furthermore, implied volatility for Bitcoin also increased. Implied volatility represents the market’s expectations of future price movements.
Its increase may indicate increasing uncertainty among traders, possibly caused by various factors, including macroeconomic events or regulatory developments.
Source: mint glass
Whales shy away
At the same time, whales also started to lose interest in BTC. Data from Glassnode indicated that the number of Bitcoin whales hit a one-month low of 1,585. This suggested that large holders could reduce their Bitcoin holdings or diversify their portfolios.
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???? #Bitcoin $BTC The number of whales has just reached a one-month low of 1,585
The previous one-month low of 1,586 was observed on September 10, 2023
View statistics:https://t.co/k1K8OK31aB pic.twitter.com/BCjFRhOwxl
— Glassnode Alerts (@glassnodealerts) September 21, 2023
According to the latest data, Bitcoin was trading at $26,985, with trading volume showing a decline.
Source: Santiment