/Bitcoin Beats Traders Long As Sellings Copy May 2021 Move to $ 30,000
Bitcoin Beats Traders Long As Sellings Copy May 2021 Move to $ 30,000

Bitcoin Beats Traders Long As Sellings Copy May 2021 Move to $ 30,000

Longs have been paying the price since early December, according to data, in a signal that accompanied the market’s pullback several times last year.

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Bitcoin batea a los traders en largo mientras las liquidaciones copian el movimiento de mayo de 2021 hasta los USD 30,000

Bitcoin (BTC) has caused significant pain to the bulls in recent weeks, and now, recent data shows just how much.

In a tweet on January 10, on-chain analytics firm Glassnode revealed that traders long on BTC had suffered a repeat from May last year, when BTC / USD started to fall towards USD 30,000.

Long traders fail to “catch the knife”

According to the Longs metric Liquidations Dominance from Glassnode, the “majority” of the sell-offs during the new year involved long positions.

This is not surprising, given the overall trajectory of Bitcoin since late November, but the magnitude of the Losses puts the last few weeks on a par with May in terms of longs versus losses in short positions.

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“Bitcoin longs sell-off dominance has reached 69%, the highest level since the deleveraging event of May 2021”, commented the researchers.

“This means that most of the sell-offs in the futures markets over the past few weeks were long traders trying to catch the knife. illo “.

Annotated graphic of long liquidations in Bitcoin futures. Source: Glassnode / Twitter

If the data is observed, in the period between the end of July and the end of November the opposite trend was formed, and the shorts were victims of an unexpected bull run multiple times.

Unusual lows

While long sell-off peaks do not always mark local price lows, the appetite for a change of course in the short term has manifested itself for a long time.

Bitcoin, as reported Cointelegraph, is firmly “oversold” by historical standards at current prices.

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“If we bounce here, I’m not convinced we won’t revisit these prices , but some short-term relief would be nice, “ tweeted on Saturday quantitative analyst Benjamin Cowen as part of the intraday observations.

“The daily RSI is also technically oversold, $ 40,000 – $ 42,000 is theoretically a support area as well” .

Cowen was commenting the Crypto Fear & Greed Index, which hit rare lows of just 10/100 over the weekend, signifying “extreme fear” among market participants.

Since bottoming out in the depths of 2018 depression, $ BTC has only seen this oversold indicators only four times at 3k, 10k, 4k, and 30k. Not long after these records were achieved, #Bitcoin rallied 340%, 17%, 1585%, 141% accordingly. Full details: https://t.co/qtlKY9tQzS pic.twitter.com/oSpb3fTjKX

— CRYPTO₿IRB (@crypto_birb) January 8, 2022

Since bottomed out in the depths of the 2018 crash, BTC has only seen these oversold indicators four times at $ 3,000, $ 10,000, $ 4,000, and $ 30,000. Shortly after these records were hit, Bitcoin rallied 340%, 17%, 1,585%, and 141% accordingly.

Such occurrences tend to be followed by a recovery in price and sentiment, but the current lows are occasional, as the same price level of a year ago was accompanied by the opposite phenomenon: 93/100 or “extreme greed”.

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