The crypto town has been on a roller coaster ride for quite some time now. And as per the drill Bitcoin has been the first to bear the brunt this time as well. The weekend was harsh for the star crypto when it revisited levels around $17,000. However, the market has been recovering at a brisk pace, and so is BTC price. Which at the time of press stands at $20,755.24.
Successively, marketers have been analysing the catalysts fueling the trends. And are now keen on not repeating the mistakes which aggravated the downfall. An analyst from the business sheds light on the rise of Bitcoin derivate exchange reserves while relating it with the trends. Meanwhile, on-chain analysis shows a spike in accumulations assisted by miners and whales.
Is This What Aggravated Bitcoin’s Price Fall?
The Bitcoin analyst cites that, the rapid crash in BTC price did panic hodlers and some of the whales. Wherefore, their portfolios have been going down. In order to secure their portfolios, investors have been depositing their holdings into derivatives exchanges. And open-leveraged short positions to lower the risks.
The proponent states that the aggressive short-positions aggravates the selling pressures. On the flip side, it could also create a possibility for a huge-short-squeeze if the situation favours. The protagonist further cites that, the potential short-liquidations and profit-taking (which usually occurs at price bottoms). Could bring a rapid surge in price and could commence a bull run.
According to Glass Node, the statistics of Miner Net-Position Change have been signalling that miners have stopped selling and are now accumulating. On the other hand, the Bitcoin accumulation trend score has been showing an increase in the acquisition by big-money buyers.
Concluding, trade decisions made in panic and FUD have often made way for regrets. Likewise excessive shorting has been one of the factors behind the steep plunge in prices. Hence it is advisable to not take decisions hastily. That said, the rise in buy orders is overwhelming amidst the current scenario.