The movement of Bitcoin’s value is under close observation in the market due to its status as the most prominent cryptocurrency, which consequently impacts the overall market performance.
There has been a recent resurgence in large investors shorting BTC as it approached the $65K mark, raising concerns about a potential decline prior to any substantial upward shift.
Whale Position Sentiment, a metric that monitors the activity of large investors across various exchanges, has displayed a decrease in sentiment, indicating a rise in short positions. This alteration in sentiment typically exhibits a strong connection with the movements of Bitcoin’s price.
In order for BTC to steer clear of entering a bearish territory, it is crucial for it to maintain a position above $62K, which is the Short-Term Holder Realized Price and an important level that signifies the continuation of the present trend.
Mean leverage delta
The decline in investor sentiment has led to a reduction in the average leverage delta of Bitcoin between long and short positions, falling below -10. This signifies that short leverage currently holds dominance in the market, as opposed to the previous dominance of long leverage.
Despite the shift in positions among large investors, the mean leverage delta does not definitively affirm a pessimistic viewpoint at this moment. Bitcoin is still managing to stay above the $63K mark while maintaining stability at the 200 exponential moving average.
Despite the actions of large investors, it suggests that BTC may still exhibit an upward trend under certain conditions…
Distribution of realized UTXO prices
One integral indicator that backs Bitcoin’s future outlook is the UTXO Realized Price Distribution (URPD), which unveils that the $63K level serves as a crucial support region. This area also encompasses the resistance level of $65K.
If Bitcoin is successful in staying above $63K, it holds the potential to surpass $65K. Conversely, a drop beneath this support level could result in a decline to $60K before any resumption of an upward trajectory. Market participants are closely monitoring this region to deduce the subsequent direction of Bitcoin.
Bitcoin bot tracing indicator
Further bolstering the optimistic perspective for Bitcoin is the Bot Tracking Indicator. This instrument traces the activity resembling that of high-frequency bots in the market, indicating that bots are accumulating extended positions.
An uptick in bot activity on the buying side frequently aligns with a surge in price levels. If Bitcoin undergoes a minor retracement to $60K, it could attract additional purchasing from large investors at reduced rates, potentially driving BTC towards $65K once again, thereby presenting substantial returns for major holders.
Despite the return of large investors betting against Bitcoin as it approaches $65K, the fundamental structure of the market remains intact. As long as BTC sustains its position above critical levels like $62K and $63K, the potential for greater profits remains.
The activity of bots and other on-chain metrics support a positive outlook, indicating that any downturn may only be temporary before Bitcoin embarks on another upward trajectory.
Traders and investors should remain vigilant regarding these pivotal support and resistance levels to anticipate the subsequent movement of the market.