Saturday, July 13, 2024

The price of bitcoin has risen, but where have all the leveraged long traders gone?

The price of Bitcoin was always touted to reach new heights, with great expectations from crypto experts and non-experienced crypto fans alike. Now that the price of, perhaps, the greatest-known cryptocurrency on earth is about to enter an upswing, all the professional traders seem to have sunk into the woodwork and disappeared. Where are they, and why is there no sign of them?

Looking at the Charts

June has just begun, and the charts look good for Bitcoin. There is little room for doubt about its potential climb. The long-standing symmetrical triangle is about to break in the direction of an upward trend. However, according to the metrics of derivatives, there is another story to be told. Pro traders are not prepared to add long and leveraged positions, overcharging for protection on the downside.

Will Bitcoin Undergo a Course Reversal?

The question arising in everyone’s mind is whether Bitcoin will go on a course reversal in light of crumbling macroeconomic conditions. Furthermore, its worth seeing if bitcoin turns the $30,000 to $31,000 levels into support. This will largely depend on how markets perform on a global scale. Right now, from stock markets to real estate, inflation has hit people hard. The cause for bitcoin isn’t helped much with the growing popularity of Ethereum either. Investors may be avoiding the Bitcoin bite due to expectations of a future downturn.

Derivatives Metrics

Another reason traders may be sceptical about trading in Bitcoin right now is because the premium of Bitcoin’s futures is lying low below the 4% mark. This is the case since 12 April. Such a reading implies a typically bearish market.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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