2023-05-12 00:10:10
© Reuters Bitcoin Bulls ‘Suffer’ More Than Bears
CriptoFácil – Although the price of Bitcoin (BTC) has remained between US$ 27 thousand and US$ 28 thousand in the last 48 hours, the volatility with rises and falls of up to 3% in the period hindered the plans of investors in Long and Short (bought and sold).
According to data from Coinglass, Bitcoin bulls, bullish investors who bet on a rise in the cryptocurrency’s price, were liquidated four times more than bears, those who bet on a decline, the bearish ones.
In total, according to company data, $17 million worth of bullish cryptocurrency futures positions were liquidated. Meanwhile, just $4 million of bearish positions, the shorts, have been liquidated, according to Coinglass data.
The imbalance in selling reflects that most futures traders did not anticipate the price drop. Bullish and bearish contracts represent monetary losses incurred by traders who bet on a price rise or fall.
These investments are made through futures contracts. Bitcoin and Ether short and long investors were the hardest hit. Each of these two assets accounted for around 20% of liquidated bullish positions and 25% of bearish ones.
Bitcoin (BTC)
This movement occurred on a day of high price volatility, preceding the publication of the US inflation report. Additionally, false rumors of massive selling spread, creating downward pressure that may have contributed to the momentary drop in the price of Bitcoin.
On the current movement in Bitcoin price, data from Cointelegraph Markets Pro and TradingView showed that the pair saw a rapid sell-off the previous day. This took BTC to $26,850 after allegations that the US was selling the Bitcoins it confiscated.
“This was later refuted. But for already sensitive crypto markets, the damage was done,” reads the analysis.
Among traders, Jackis described the local lows as a persistent move. According to the trader, in the short term, BTC is expected to drop further.
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