bitcoin The price continued its fluctuating course during the day. The world’s largest crypto money, which climbed up to $ 45,257, caused the long and short position of 280 million dollars to become liquid with the descent from this level. Bitcoin price is trading at $ 43,005 at the time of this writing.
Short Liquidations Are The Reason For The Rise In Bitcoin Price According To Glassnode!
In his analysis shared by Glassnode, he stated that the recent rise in BTC price may be short squeezes in the market.
After three months in a persistent downtrend, #Bitcoin has experienced a counter-trend rally, pushing above $44k.
Short liquidation dominance has also increased, suggesting that a short squeeze is a partial driver of the move.
Read more in our analysis👇https://t.co/5IWpwaxDSU pic.twitter.com/L0f6hGahLh
— glassnode (@glassnode) February 7, 2022
At the time of this writing, we see that the 116 million dollar short position is liquid, with the Bitcoin price exceeding 45,000 dollars during the day.
Long positions that are liquid seem to be at the level of 157 million dollars. The most liquidated cryptocurrencies between Bitcoin $99.52 million, Ethereum $43.39 million and XRP and attracted attention with $ 16.78 million.
However, Glassnode said that short-term investors are making profits for the first time since late November. The profit account of short-term investors includes investments made more than 155 days ago.
For more than two months, short-term investors had been making losses consistently. Glassnode noted that if short-term investors take losses again, this could be a bearish sign.
In addition, Glassnode revealed that support points for Bitcoin price could be between $39,100 and $39,958. The analysis company also said that the critical indicators to watch right now are the actions of long-term investors.
Funding rate data is still in negative territory, showing that investors continue to open short positions despite large liquidations.
*Not investment advice.