The Crypto Community is Readying Itself for a $50K BTC Position – CryptoGo!

The Crypto Community is Readying Itself for a $50K BTC Position

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A pivotal Bitcoin price metric is guiding top crypto traders towards the $50,000 BTC level in the short term. Based on the market events thus far, top traders are confident that BTC will secure this position sooner than anticipated. News about Tesla’s $1.5 billion BTC investment helped BTC post a 25% gain this week.

Before these news hit the airwaves, BTC’s performance was 7.5% behind Ether (ETH). However, the multiple bullish events seen in the past few days saw BTC secure a new and unmatched high position of $48,900. Before the Tesla announcement, the BTC price range was between $30,000 and $41,500 for almost three weeks. The moment this price broke out, one can learn a lot from watching arbitrage desks and pro traders, because they are expected to ride this bullish wave as well.

Instead of taking on long position, many top traders opened short positions as the 25% BTC move commenced. Such a move is risky, especially given that the co-president of JPMorgan praised BTC this week coupled with an approval from regulators of a BTC ETF approval in Canada.

Is Ether Fueling the Bitcoin Bull Run?

Looking at historical data, one can see that BTC price actions are always at par with ETH’s performance, and ETH has shown strong bullish tendencies over the past few months. To add to this bull run, an announcement from Bitcoin’s Lightning Network talked of a record node count and total value locked (TVL) surpassed $42 million. An announcement from MasterCard talked of the company supporting cryptocurrency payments within its network by the end of 2021.

Major Cryptocurrency exchanges provide long-to-short net positioning metrics that are contrary to the current bullish signals being experienced. To get a good picture of whether pro traders are leaning bull or bear, the BTC price indicator is calculated by scrutinizing the client’s consolidated position on the spot, perpetual and futures contracts.

One has to understand that the methodologies between various exchanges vary and occasional discrepancies exist. This means that BTC enthusiasts ought to monitor current changes rather than absolute figures.

Traders’ Reaction to BTC’s Bull Run

Top traders have kept their positions relatively unchanged since February 8, when the Tesla announcement was made. Before the 25% leap, Binance’s ratio was at 1.33 and it favored longs. On 10th February, this indicator peaked to 1.53 but as of this week it is at 1.31.

Both OKEx and Huobi top traders have indicators that speculate on long positions coming up in the short term. They however, have indicators of net short positions looming under the bullish speculations.

Top Traders Playing the Waiting Game

There are speculations that before the bull-run, top traders could have moved their BTC off-exchange as they sought better opportunities. This means that one should not assume that they have settled for short positions simply by analyzing centralized exchanges. They could be waiting for the right opportunity to launch their bullish attack.

Looking at things from the current market situation, arbitrage desks, market makers, and whales reveal no extreme net long positions. A market with balanced derivatives is an indication that room still exists for more buying activity for BTC to keep on towards the $50,000 price and beyond.

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Original post: The Crypto Community is Readying Itself for a $50K BTC Position