THELOGICALINDIAN - Bitcoin beasts should brace for an appulse from traders captivation beyond quantities of the cryptocurrency tokens warns Robbie Liu
In his Friday note, the OKEx advance analyst said that the alleged “whales” may booty advantage to dump Bitcoin as it trades central the $19,500-20,000 range. He acclaimed that the breadth has become too difficult to break, abacus that the abutting sessions would see “a action amid the whales and retail traders” as Bitcoin tries to ability $20,000.
The Retail Traders’ Dilemma
The statements appeared as a allotment of a broader assay that advised Bitcoin Futures’ metrics adjoin the cryptocurrency’s assemblage aloft $19,900 in the atom bazaar on Tuesday. Mr. Liu accent that retail traders faced acute losses afterwards block both the Bitcoin amount assets and losses.
For instance, the long/short arrangement on OKEx plunged from 1.08 to as low as 0.78 amid backward aftermost weekend and Monday. It was the aforementioned aeon wherein the BTC/USD barter amount rallied higher. That showed that retail traders advancing an continued bearish alteration in the atom market. But on Tuesday, Bitcoin accustomed an best high.
With their overleveraged abbreviate positions liquidated, retail traders confused their action from bearish to bullish, this time anticipating that BTC/USD would hit $20,000, a key cerebral attrition level. But the brace fell abbreviate of affecting the advised continued ambition and antipodal direction. That afresh put traders on the amiss ancillary of the trade.
The analyst added that retail traders now don’t accept a clue about the abutting Bitcoin amount direction. A aerial affairs action central the $19,500-20,000 ambit banned their continued exposure, while an appropriately absolute affairs affect amid $18,000-18,500 reduces their abbreviate opportunities.
Bitcoin Whales to Overtake
The retail traders’ averseness allows whales to booty the driver’s seat. And according to abstracts fetched by analytics belvedere CryptoQuant, the affluent traders are attractive to dump Bitcoin as its amount eyes a assemblage appear $20,000 in the short-term.
Ki-Young Ju, the CEO of CryptoQuant, tweeted Thursday that Bitcoin arrival beyond all exchanges is activity upward, pointing to an access in whales’ deposits. That about leads to sell-offs.
Bitcoin was trading at $18,962 as of this columnist time.
