• Bitcoin traders remain unperturbed by the drop in BTC’s price below $22,000.
• CryptoQuant’s Bull/Bear Market Cycle Indicator is currently in the bullish domain, and traders are keen on opening long positions despite bearish exposure.
• Whale spending has been low compared to previous cycles and the funding rate indicates that long-positioned traders are dominant in the derivatives market.
Bitcoin Traders Unfazed by Price Drop
Despite Bitcoin’s (BTC) decline below $22,000, crypto traders have remained unfazed as they continue to take a long position with optimism for a bull trend triggered by whales‘ action. According to community-driven analytics platform CryptoQuant, their bullish sentiment could be attributed to their Bull/Bear Market Cycle Indicator which is now in the bullish domain.
Funding Rates Point Towards Long Positions
The evidence of this positive outlook is found in the funding rates which indicate that long-positioned traders are dominant in the derivatives market. At press time, the Bitcoin funding rate was 0.0018 – a positive metric implying that longs had been willing to pay shorts for their positions. Additionally, whale spending has been low compared to previous cycles which could help resist further downside pressure.
Miners and Short Term Holders Pose Selling Pressure
Although optimistic sentiment prevails among traders, CryptoQuant warns against knee-jerk reactions due to excessive selling pressure from miners and Short Term Holders (STH). Earlier this month miners transferred huge amounts of BTC onto exchanges which caused an additional wave of selling pressure apart from what was already present due to bearish trends.
Taking Profits Could Be More Profitable than Holding On
Due to these factors, CryptoQuant advises caution when making decisions regarding entering or exiting trades as taking profits could be more profitable than holding onto them for too long. This can be beneficial for both short term holders looking for quick gains as well as longer term investors who want to make wise investments over time.
Overall, Bitcoin [BTC] traders seem unperturbed about the king coin’s drop below $22,000 despite bearish exposure remaining high in the market and sell pressure coming from miners and short term holders alike . However, it would still be wise for investors to exercise restraint when making any decisions related to trading so that they can take advantage of any potential opportunities presented by fluctuations in price while avoiding any potential losses at the same time.