Massive Bitcoin longs show up on holiday crypto market

Crypto analytics agency Santiment continues to provide a variety of interesting on-chain statistics. Thus, according to the latest data, today, July 4th, and U.S. Independence Day, there was a massive increase in the number of long positions in Bitcoin (BTC) on exchanges.

This signal is traditionally considered a warning of the bullish liquidation of bears. As a result of the formation of a large number of long positions, the average funding rate of perpetual BTC futures multiplied in the last few days and now stands at 0.0033%.

At the same time, increased interest and corresponding bets were observed to a greater extent only on Bitcoin, as altcoins on a festive day receded into the background.

“Smart” money acts quiet and cautiously

Another interesting insight shared by Santiment is that the largest purchases by Bitcoin whales occur only after extremely small price movements, literally $100-$200 upwards, which keeps prices dormant. That said, after each such spike in transactions of more than $100,000 or more than $1 million, the Bitcoin price has consistently declined.

Maybe the optimism on the market is due to the holiday mood of investors, but one should be cautious when applying new information that comes to light. Bitcoin’s current position seems very tempting to buy, which, on the one hand, is exactly what the whales are doing. But don’t forget that we are just getting into the capitulation/accumulation phase, and it would not be surprising if the crypto market makes an unexpected 10% squeeze down from these levels, or the same whales would close their positions into you, having previously accelerated the price hike and then buying back your liquidations.

Source: U.Today

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