During the recent Bitcoin crash, about $2 billion worth of long positions were liquidated, and the only question left was: “Has the Bitcoin correction ended?”
Although people know that Bitcoin’s correction is coming when the market rises, no one knows when it will actually come. In addition, with every price increase, Bitcoin’s ATH gets closer and closer.
Therefore, the latest development of cryptocurrency has blinded many users . As usual, greed and FOMO sentiment took over the market, and prices started to climb without the necessary momentum. A small adjustment on the chart would usher in a huge shock.
With this in mind, the chart above clearly shows that Bitcoin has been overbought in most recent rebounds . Although this proves the fact that the correction is overdue, it also reveals how long cryptocurrency users have been blinded by BTC price movements.
Also consider the next chart, which highlights FOMO and greed emotions. In fact, these sentiments have been at their peak for some time, which is why no matter how small, corrections are needed to give Bitcoin a chance to break through the ATH on the chart. However, because it is impossible to make accurate corrections, it is not recommended to use a new ATH as the target point.
However, this story has more interesting points. It seems that during this period, a whale is hoarding short chips on Bitfinex. In fact, it is not clear whether it is indeed a single entity.
As can be seen from the attached picture , since October 19, whales have been shorting the market. It wasn’t until after October 19 that the price of Bitcoin finally began to climb from $11,000 on the chart to $19,000. Now, this is unusual on several levels.
In fact, there are two ways to explain why this is unusual:
- Short position is a simple hedge against a good position
- It’s just a whale trying to stop the BTC rally from happening alone
When the price fell on November 24, the above-mentioned whale seemed to have gained his due income and closed the position (including USDT and USD).
Perhaps at present, the short ratio of Bitfinex and Binance is abnormally high. Given that the two exchanges are the two of the largest BTC-USDT trading pairs hotspots, the odds of the market long seem to be less favorable .
In fact, as shown in the figure above, there are a large number of sell orders at $19,500 and $18,750 respectively. Therefore, we can still expect Bitcoin to soar to these levels. However, it should also be noted that BTC corrections that exceed the above levels may still change .
The original text comes from ambcrypto, compiled by Blockchain Knight, the English copyright belongs to the original author, please contact the compiler for Chinese reprint.
