Bitcoin price is very uncertain right now as on-chain data suggests that whales have started to sell off some of their holdings
Santiment revealed that traders on BitMEX are increasing their short positions against BTC. It could be a great sign for those waiting for markets to turn upward again, as Bitcoin price tend to increase when crowd FUD begins to take hold.
Although the leveraged positions are substantially less now as some traders may have learned a painful lesson, data from the cryptocurrency analytics tool Santiment reveals that users employing BitMEX still envision adverse price developments for BTC.
? #Bitmex traders are continuing to short #Bitcoin in large quantities, at the most #bearish ratio since April, 2020. This is a great sign for those waiting for markets to turn upward again. Prices tend to increase when crowd #FUD begins to take hold. https://t.co/yIlYdMpHPQ pic.twitter.com/AHyPXWsTfg
— Santiment (@santimentfeed) June 17, 2021
BTC whales started selling as Bitcoin price dipped to $37,000
Bitcoin price is trying to hold closer to $40,000 after a deep plunge to $30,000 and one of the worst monthly selloffs on record. The rates at negative levels over the last few weeks, hitting their lowest level in 14 months. The data implies that after each major funding rate drop, the price of BTC tends to move upward.
Also, the cryptocurrency insights firm revealed BTC has been ranging around $39,000 as crowd optimism has been slowly dwindling, which could be a good indication of crowd fear opportunists can pounce on. The firm elaborated replying to a user, saying a great trading strategy could be buying when the crowd is fearful and selling when it is euphoric.
? #Bitcoin is ranging at just under $39k. And crowd optimism toward #buyingthedip has settled down significantly. With sentiment back to neutral after being mostly positive to start June, this is a good indication of crowd fear opportunists can pounce on. https://t.co/2dXZXGfXoS pic.twitter.com/hsuQIQ9HFt
— Santiment (@santimentfeed) June 16, 2021
According to CryptoQuant, Bitcoin whales have started to dispose of some of their holdings. This has made the market very uncertain, and the company’s CEO warned traders to be highly vigilant in similar situations.
This was retweeted by Ki Young Ju, CEO of Crypto Quant, as follows:
$BTC market is very uncertain right now.
Whale selling indicates a bear/fake-bull market, and retail selling implies a bull market. We’re in neutral now.
Stop trade, be patient and wait for the next volatility. pic.twitter.com/obXS6eFBGN
— Ki Young Ju 주기영 (@ki_young_ju) June 18, 2021
At right now, Bitcoin continues to gradually lose value with another price slump to around $37,000. Most alternative coins are also suffering, with ETH dipping beneath $2,400 and BNB close to dropping below $350.
You can see the Bitcoin price here.
Read more:
- Bitcoin Price Dropped Another Notch Around $37,000 After A Failed Attempt By Bulls To Retake The $40,000
- The Kraken Exchange CEO Jesse Powell Into The Elon Musk Needs To Delve Bitcoin Mining And Here’s How Billionaires Responded