The crypto market has finally entered the green zone, and several assets have reclaimed their crucial levels. As mentioned in the Coinpedia, BTC is finally trading beyond $20,000, but Ethereum has crossed the $1,500 range. The King currency, Bitcoin's immediate resistance lands at $20,750, and the support is across $20,650.
In the past week the situation was bleak. As the spot market had lost its demand against the derivative market, and the significant reason was a rise in leverages positions. These leveraged positions has successfully fascinated short sellers, therefore, most market participants anticipated a bearish cycle. While, the Bitcoin surged immensely in the past two days, most of the leveraged short positions resulted in huge liquidation.
How Will This Affect The Market Condition?
In the middle of such high liquidation, Bitcoin's predicted leverage ratio has raised, which indicates that investors are currently choosing to go long. Many the times it is observed that whenever there is a rise in the leveraged positions, then there is also an increase in the currency's price volatility.
According to Coinpedia, a move opposite to the predicted direction will usually lead to huge liquidation. At the same time, if we notice the Bitcoin Addresses, it is observed that addresses with more than 100 BTC as well as addresses with more than 1000 BTC states a bull run for the last two days.
While, Bitcoin ETF and low demand by Bitcoin whales says that this upward momentum by Bitcoin might not go far in the future. Furthermore, once investors start their move to take out profit, then the leading currency might yet again begin its downward movement. As Bitcoin price reaches the overbought space, the selling pressure rises dragging down the price. However, this selling pressure is anticipated to occur above $22,000 trading level.
In the past week the situation was bleak. As the spot market had lost its demand against the derivative market, and the significant reason was a rise in leverages positions. These leveraged positions has successfully fascinated short sellers, therefore, most market participants anticipated a bearish cycle. While, the Bitcoin surged immensely in the past two days, most of the leveraged short positions resulted in huge liquidation.
How Will This Affect The Market Condition?
In the middle of such high liquidation, Bitcoin's predicted leverage ratio has raised, which indicates that investors are currently choosing to go long. Many the times it is observed that whenever there is a rise in the leveraged positions, then there is also an increase in the currency's price volatility.
According to Coinpedia, a move opposite to the predicted direction will usually lead to huge liquidation. At the same time, if we notice the Bitcoin Addresses, it is observed that addresses with more than 100 BTC as well as addresses with more than 1000 BTC states a bull run for the last two days.
While, Bitcoin ETF and low demand by Bitcoin whales says that this upward momentum by Bitcoin might not go far in the future. Furthermore, once investors start their move to take out profit, then the leading currency might yet again begin its downward movement. As Bitcoin price reaches the overbought space, the selling pressure rises dragging down the price. However, this selling pressure is anticipated to occur above $22,000 trading level.
