Bitcoin price rose to $60,000 today for the first time since April. The CEO of a well-known data analytics company revealed that the whales were largely driven by the move and that there hadn’t been any major short-term divestitures so far.
This is the world of whales
Bitcoin touched $60,000 for the first time since April 18 today. Zoom out shows great height. The value of the cryptocurrency has increased by 25% in the past 30 days. It’s also up 100% since the sub-$30,000 crash in July.
comment In this regard was Ki Young Joo, CEO of CryptoQuant – a well-known data analysis and research company in the industry. He explained that the rally was mainly driven by whales and that we haven’t seen a “liquidation of big short positions yet”.
This rise was driven by whale buying, not short squeeze.
BTC massive buy orders on derivatives exchanges are not short liquidations.
this means that:
1/ There are no big sell deals liquidated yet,
2/ Whales have been chasing long positions since the decline.
To be clear, short squeeze is an event in which the price of an asset rises significantly because leveraged short positions are liquidated (shrinked). This creates a snowball effect where the higher the price, the more shorts are eliminated, boosting the price even more.
Looking further afield, the fact that there are no large liquidations on short positions may also have other implications. Data from Bybt reveals that in the past 24 hours, $150 million worth of shorts have been wiped out, which, in fact, isn’t very big.
The chart below shows the number of bitcoin shorts on Bitfinex.
It may also indicate that there is confidence in the current rally. Since there is not much pressure from the gauges on the chain, this could lead to further validation of the operation and possibly push it higher.
HODLers will HODL
as Potato encryption It was recently reported that over 85% of the total Bitcoin circulating supply has not moved in more than three months. This means that HODLers have confidence in the cryptocurrency and are not showing any signs of selling yet.
In our latest Bitcoin price analysis, we talked about what information is currently available on the chain and what it means for BTC in the near and medium future.
There were signs of light distribution as price reached multi-month highs, but this is to be expected, and we have discussed it at length in our previous analyses. It could pose some minor challenges in the short term straight away as investors who bought between $55,000-$58,000 may look to break even.
However, it is important to note that the on-chain metrics are still strongly bullish as most groups of HODLers continue to build up.
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