As the crypto community began to take its sigh of relief after bitcoin’s slight bull run, a recent on-chain analysis asserts its temporary nature. According to a market analyst on crypto Twitter, the sharp hike in recently opened bitcoin positions across derivatives exchanges is indicative of more liquidity and interest coming into the futures market.
According to the analysis, “roughly 1.44 billion BTC positions have been opened since 07/12 across derivatives exchanges”. Following this, he also highlighted that whales are heavily liquidating, emphasizing that “the of addresses with a balance equal to or higher than 1,000 BTC has been declining”, further adding that,
“While bitcoin gained 5,050 points in market value since 07/12, 30 whales, each holding more than $23 million worth of BTC, could have left the network”.
Along with BTC whales, on-chain data displayed that even miners began a sell-off as soon as the market turned green. The analyst explained that,
“The number of bitcoin tokens held by affiliated miners’ wallets dropped by nearly 1% since 07/12. Roughly 13,850 BTC, worth over $318 million, were sold by miners in the past 9 days”.
Bitcoin May Touch $28,000, Here’s Why
On one hand, on-chain data predicts that the bitcoin bull rally is merely a temporary consequence of increased long and short positions in the derivatives market. On the other hand, contrasting on-chain metrics expect bitcoin to go as high as $28,200 in near future.
According to Watcher Guru’s recent market analysis, after BTC fell below $20,000 on three occasions, its latest move into the $22,800 zone, followed by the triple bottom setup broke out in the positive direction.
The analysis pointed out that since bitcoin’s 1st resistance zone was marked between $22,200 and $22,800 was breached there may potentially be a better trend reversal. In light of this, “the recent correction comes into play perfectly because the bounce back is taking place from the former resistance zone($22,200-$28,200), which is now a possible support area”.