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Key Bitcoin price metric indicators show traders are positioned for $50K BTC

Bitcoin ( BTC ) price submitted a 25% gain following this week’s news of Tesla’s $1. 5 billion BTC investment came out. Prior to this particular reveal, BTC was lagging behind Ether’s ( ETH ) functionality by 7. 5% but the numerous bullish events of the past few days helped BTC to hit a new all-time higher at $48,900.

Previous to Tesla’s announcement, BTC price was trading in the $30, 000 in order to $41, 500 range for almost 3 weeks and once the cost broke out one would expect pro traders and arbitrage desks to follow the bullish trend.

Instead of flipping long, many of the best traders opened short positions as BTC commenced its 25% move. This seems risky given that this week Bitcoin received praises from JPMorgan’s co-president and regulators accept a BTC ETF approval in Europe .

key bitcoin price metric indicators traders are positioned for 50k btc
Bitcoin and Ether USD prices with Bitstamp. Source: NYDIG Digital Assets Data

Historical data shows that Bitcoin price actions tend to trade within tandem with Ether, which has been strongly bullish for months. Contributing to this bullish scenario, Bitcoin’s Lightning System announced a record node count and the total value locked (TVL) overtaken $42 million.

Mastercard also declared that it would support cryptocurrency payments on its network by the end of 2021.

These bullish signals contrast with the long-to-short net positioning metrics offered by major cryptocurrency exchanges.

This indicator is certainly calculated by analyzing the client’s consolidated position on the spot, perpetual and futures agreements and it provides a clearer view of whether professional traders are leaning bullish or even bearish.

It is important to note that there are occasional differences in the methodologies between numerous exchanges, so viewers need to monitor changes instead of complete figures.

key bitcoin price metric indicators traders are positioned for 50k btc 1
Exchange’s top traders BTC long-to-short proportion. Source: Bybt. com

Since Feb. 8, when the Tesla announcement took place, exchanges’ top traders have kept their particular net positions relatively unchanged.

Just before Bitcoin’s 25% rally, Binance had a 1 . 33 ratio favoring longs, which is good previous week. This sign peaked at 1 . 53 on Feb. 10, yet has since then returned to at least one. 31.

On the other hand, Huobi top traders a new 0. 74 indicator in front of Feb. 8, which continued to be flat for three days. Upon Feb. 11 as BTC rallied from $44, 1000 to $48, 000, these traders began increasing net longs, reaching the current zero. 80. Although this level is still favoring net pants by 20%, it remains above the 0. seventy five level from Jan. twenty nine.

Lastly, OKEx top traders held the 14% net long place before the Tesla news was released. Although they’ve reverted to some 47% net short placement on that same time, over the last four days the particular indicator has come back to 1 . 03. Currently, OKEx traders remain well below the particular 52% net long position from two weeks ago.

Staking could be capturing top traders

Top traders could have furthermore moved their BTC off-exchange in search of better yield possibilities. Therefore , assuming that they’ve joined short positions solely by monitoring centralized exchanges’ is actually a brash conclusion to reach.

As things currently stand, the long-to-short signal does not show extreme internet long positions from arbitrage desks, market makers, and whales. A balanced derivatives market suggests that there’s ample area for buying activity if BTC continues to rally to 50k and above.

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