Current Bitcoin rally driven by whales, no large short positions are yet liquidated: Analyst
Current Bitcoin rally driven by whales, no large short positions are yet liquidated: Analyst
The Bitcoin price rose to $ 60,000 for the first time since April. The CEO of a well-known data analysis company announced that the step was mainly driven by whales and that there have yet been no major short liquidations.
This is a Walwelt
Bitcoin has reached $ 60,000 for the first time since April 18. The zooming out shows a considerable rally. The cryptocurrency has increased by 25 % in the past 30 days. It has also increased by 100 % in July since the crash.
Comment On this topic was Ki Young Ju, the CEO of Cryptoquant-a data analysis and research company known in the industry. He pointed out that the rally was mainly driven by whales and that we have so far not "liquidated large short positions".
This rally was driven by whale purchases, not by short squeeze.
massive BTC purchase orders on derivate exchanges do not come from short liquidations.
that shows:
1/ so far no large short positions have been liquidated,
2/ whales have built long positions since the break-in.
for clarification, a Short pressure is an event in which the price of an asset increases exponentially, as levered short positions are liquidated (squeezed). This creates a snowball effect, the higher the price increases, the more shorts are wiped away, which drives the price even further.
Apart from that, the fact that there are no major liquidations of short positions can also have other effects. BYBT data show that shorts worth $ 150 million have been deleted in the last 24 hours, which is indeed not so important.The following graphic shows the number of Bitcoin shorts on Bitfinex.
It could also indicate that there is confidence in the current rally. In view of the fact that there is no considerable pressure from on-chain metrics, this could continue to validate the run and maybe even further increase.
Hodler are Hodl
Like Kryptokunoffel recently reported , over 85% of the total circulating bitcoin offer have not moved for more than three months. This means that Hodler have confidence in cryptocurrency and do not yet show any signs of a sale.
In our latest Bitcoin price analysis, we spoke about the currently available on-chain information and their importance for BTC in the near and medium-term future.
There was signs of a light distribution when the price reaches this multi -month highs, but this is expected and we discussed it in detail in our previous analyzes. This could bring about some small challenges at short notice, since investors who bought between $ 55,000 and 58,000 may try to achieve the profit threshold.
However, it is important to note that the on-chain metrics remain strongly bullish, as most Hodlers groups continue to accumulate..