Crypto Shorts Suffer $147 Million Squeeze As Bitcoin Returns Above $63,000

Data shows the cryptocurrency sector as a whole has witnessed a high amount of liquidations following the volatility Bitcoin and others have gone through. Bitcoin Has Recovered Back Above The $63,000 Level Following the news of the US Federal Reserve cutting back on interest rates, Bitcoin has responded positively, with its price breaking above the [...]

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Which Altcoins Could Skyrocket Next? Analytics Firm Points To These

The on-chain analytics firm Santiment has pointed out how these three altcoins may be more likely to see price jumps in the coming future. These Altcoins Are Being Heavily Shorted On Binance Right Now In a new post on X, Santiment has discussed about some altcoins that could be worth keeping an eye on because [...]

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Bitcoin Surges Above $57,000, But Investors Still Shorting: Fuel For More Rise?

Data shows derivatives exchange users are still shorting Bitcoin after the recovery that the cryptocurrency has enjoyed beyond the $57,000 mark. Bitcoin Funding Rate Is Still Negative On Major Exchanges According to data from the analytics firm Santiment, investors have been shorting BTC for the last few days. The indicator of interest here is the [...]

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Crypto Market Sees Diverging Strategies Between Short and Long-Term Holders: Report

The famous analytical service CryptoQuant has provided some interesting information about the actions of investors in the crypto market in the last two weeks. In a recent report, the firm highlighted that there is a clear dichotomy between short-term and long-term Bitcoin holders. Now that the short-term investors are leaving due to market volatility, the […]

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Bitcoin Funding Rates Turn Negative: Shorts Turn To Get Squeezed?

Data shows the Bitcoin funding rates on exchanges have turned negative, a sign that the shorts have now become the dominant force in the market. Bitcoin Funding Rates Have Turned Negative After Market Crash As pointed out by an analyst in a CryptoQuant Quicktake post, the Bitcoin funding rates have seen a sharp decline recently. The “funding rate” refers to a metric that keeps track of the periodic fee that derivatives contract holders are currently exchanging with each other. When the value of this indicator is positive, it means the long investors are paying a premium to the short ones in order to hold onto their positions. Such a trend implies a bullish sentiment is shared by the majority in the sector. Related Reading: Chainlink (LINK) Recovers 20% As Network Lights Up With Activity On the other hand, the metric being negative implies a bearish mentality could be the dominant one in the market as the short holders outweigh the longs. Now, here is a chart that shows the trend in this Bitcoin indicator for all exchanges over the past few months: As displayed in the above graph, the Bitcoin funding rate had been positive throughout the year 2024, save for a couple of small dips into the negative region, until this latest crash, which finally took the indicator to notable red values. The earlier positive values were naturally due to the fact that the market had a bullish atmosphere to it, so the average investor was trying to bet on the price to rise. From the graph, it’s visible that this positive sentiment was the strongest during the rally to the all-time high (ATH) price fueled by the spot exchange-traded fund (ETF) demand. During the consolidation period that had followed this rally, BTC had seen a couple of notable drawdowns, but they weren’t enough to shake off the bullish mood. The recent sharp crash, though, appears to have finally caused investors to have a bearish outlook on the cryptocurrency. The Bitcoin crash had resulted in a huge amount of long liquidations in the market, triggering what’s known as a squeeze. In a squeeze event, a sharp swing in the price causes mass liquidations, which in turn fuels the price move further. This then unleashes a cascade of more liquidations. Since the latest such event involved the longs, it would be called a long squeeze. In general, an event of this kind is more likely to affect the side of the derivatives market that is more dominant. As this power balance has shifted towards the shorts now, it’s possible that the market could instead see a short squeeze in the near future. Related Reading: Is Bitcoin In A Bear Market Now? Heres What On-Chain Data Suggests Naturally, it’s not necessary that a short squeeze should take place, but if the price ends up witnessing some volatility, it’s possible it may end up punishing the short-heavy market. BTC Price Bitcoin has been steadily making recovery from the crash as its price has now climbed back to $57,500. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com

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Bitcoin bulls were obliterated, but is it time to catch the falling knife?

Bitcoin derivatives show traders morale is low, weakening the odds of a 20% rise from the $49,320 BTC bottom.

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Realized losses minimal despite 80% of STH supply being underwater

Tracking the percentage of STH supply in loss is crucial for understanding market sentiment and potential price movements. A high percentage of Bitcoin supply in loss indicates that a significant portion of recent buyers are holding positions at a loss, which can be a precursor to increased sell pressure if these holders decide to cut […]

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Ethereum futures open interest hits 19-month high, yet ETH price weakness intensifies

Ethereum derivatives metrics show increased activity, indicating higher interest but not necessarily a bullish trend.

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Bitcoin Set For Critical Price Resistance Encounter Analyst

The price of Bitcoin has continued to maintain an impressive recovery trajectory following an earlier dip in the week, which saw the asset trade below the $50,000 price mark. The crypto market leader was greatly affected by a widespread decline in the global financial markets, losing over 16% of its market value, due to fears of a potential recession in the US, among other factors. However, as Bitcoin now hovers around $60,000, market experts and analysts have continued to roll out several conditions needed for the premier cryptocurrency to sustain this current positive performance. Related Reading: XRP Has Surpassed Bitcoin, Ethereum, And Solana Combined In This Metric Bitcoin To Meet Critical Short-Term Holders SOPR Resistance  In a Quicktake post on Cryptoquant, an analyst with the username tugbachain shared an insight into the Short Term Holder Spent Output Profit Ratio (STH SOPR) of the Bitcoin market.  For context, the STH SOPR is a market metric that indicates whether holders are selling their assets at a loss or profit. It is used to measure profitability outputs by providing information on the profit or loss status of short-term investors. The STH SOPR usually tracks assets held for a period less than 155, with a value less than 1 indicating short-term holders would be selling their assets at a loss. While an STH SOPR of 1 states that these investors will break even on their sales.  Interestingly, tugbachain reports that the STH SOPR of Bitcoin is currently above 1, meaning that short-term holders are currently in profit. However, the analyst warns that BTC approaches a strong resistance at the 1.03 SOPR region, at which they predict the investors may soon start taking profit which could lead to an intense selling activity.  As expected, this would exert downward pressure on BTCs price. Albeit, in the presence of the right market conditions such as high buying activity, tugbachain predicts the crypto market leader could overcome this resistance and maintain its present upward trajectory.  Related Reading: Bitcoin Nears $60,000 As Putin Signs Law Legalizing Crypto Mining In Russia BTC Price Overview At the time of writing, Bitcoin continues to trade at $60,639 with a 1.01% gain in the last day. However, the tokens daily trading volume is down by 4.35% and is valued at $38.2 billion. According to historical price data, the premier cryptocurrency could encounter major resistance at the $67,000 – $70,000 price region if it breaks upward from its current consolidation state. However, if Bitcoin breaks downward, its next viable support level lies at the $55,000 price zone. Featured image from Barron’s, chart from Tradingview

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Bitcoin Makes Sharp Recovery, But Watch Out For Resistance At $64,000

On-chain data shows that the Bitcoin short-term holder whales have a cost base above $64,000, which could be a potential resistance point for BTC. Bitcoin Is Not Far From Realized Price Of Short-Term Holder Whales After Rally As pointed out by an analyst in a CryptoQuant Quicktake post, the BTC price had slipped below the Realized Price of the short-term holder whales earlier. The “Realized Price” here refers to an indicator that keeps track of the average cost basis that the investors of a particular group currently share. Related Reading: Bitcoin NVT Golden Cross Gives Bottom Signal: What Happened Last 2 Times When the asset’s spot price is under this metric, the holders belonging to the cohort are in a state of net unrealized loss. Similarly, it being above the indicator implies the group is enjoying profits. In the context of the current topic, there are two market segments of interest: the short-term holder and long-term holder whales. The short-term and long-term holders are the two main divisions of the Bitcoin sector based on holding time. The short-term holders (STHs) are the investors who bought their coins within the past 155 days, while the long-term holders (LTHs) include the hands who have kept their coins dormant for longer than this period. The “whales” generally refer to the entities that carry at least 1,000 BTC in their wallets, so the STH and LTH whales would naturally correspond to the large members of the respective cohorts. Now, here is a chart that shows the trend in the Realized Price for these two Bitcoin groups over the past few years: As displayed in the above graph, the Bitcoin spot price had slipped considerably below the Realized Price of the STH whales during the recent market downturn. However, with the price observing recovery, it has now neared back to that level. The average cost basis of the STH whales is between $64,000 and $65,000, so a retest of it could be coming soon. However, Such a retest could prove difficult for the cryptocurrency. The STHs represent the weak hands of the market, which can be sensitive to changes in the market. The cost basis is naturally an important level for any investor, but this cohort especially can be likely to react when such a retest happens. Since most STH whales have been at a loss recently, some may be desperately looking forward to a retest taking place so they can exit from the market at their break-even level. It remains to be seen whether Bitcoin will overcome this obstacle if the current recovery rally continues that far. Related Reading: XRP Sharks & Whales Push Bags To ATH As Price Rockets 19% While the STH whales suffer losses, the LTH whales continue to be in high profits as their Realized Price is at just $22,000, implying that their patience has paid off. BTC Price Bitcoin had briefly broken above $62,000 during the past day, but the coin’s price has since seen a retrace to $60,500. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com

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Bitcoin Makes Third Retest Of Historical Support, Analyst Sounds Alarm

An analyst has warned that support levels weaken the more they are retested and Bitcoin is now doing a third consecutive retest of a major such level. Bitcoin Is Again Retesting The Short-Term Holder Realized Price As explained by CryptoQuant community manager Maartunn in a new post on X, BTC’s latest drawdown has led to it doing another retest of the short-term holder Realized Price. The “Realized Price” here refers to an indicator that, in short, keeps track of the average cost basis of the investors or addresses on the Bitcoin network. When the value of this metric is greater than the spot price of the cryptocurrency, it means the average investor in the market could be assumed to be holding a net unrealized profit. On the other hand, the indicator being below the asset’s value suggests the dominance of losses on the blockchain. Related Reading: Ethereum Seeing High Exchange Outflows, But Watch Out For This Bearish Signal In the context of the current topic, the Realized Price of the entire userbase isn’t of interest, but that of a specific segment of it: the short-term holders (STHs). The STHs include all the investors who bought their coins within the past 155 days. Now, here is a chart that shows the trend in the Bitcoin Realized Price for the STHs over the last few months: As displayed in the above graph, the Bitcoin spot price had slipped under the STH Realized Price in June, but it finally managed to break above the line halfway through last month. In the weeks since the asset has seen a couple of pullbacks back to the line, but it has managed to find rebounds each time. Now, after the latest decline, the coin’s price is once again retesting the level. Historically, the STH Realized Price has been a reliable point of support for the cryptocurrency during bullish periods. The explanation behind this pattern may lie in how investor psychology works. The STHs represent the fickle-minded side of the sector, who are sensitive to change. As such, whenever the price retests their cost basis, they may be prone to making panic moves. In times when the atmosphere in the market is bullish, the STHs may believe such a retest to merely be a dip opportunity, so they could decide to accumulate more. This could be why Bitcoin has found rebounds at the level in the past. While the level has generally been reliable indeed, this latest retest that BTC is facing is already the third within a narrow period. “Each time a level is tested, it becomes weaker,” notes Maartunn. Related Reading: XRP Bullish Signal: Shark & Whale Population Sharply Growing It now remains to be seen if the Bitcoin STHs still carry a bullish outlook on the cryptocurrency or if the constant pullbacks have put fear on their minds. BTC Price Bitcoin has continued its recent bearish momentum in the past 24 hours as its price has slid another 2% to reach the $64,700 level. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com

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Key Bitcoin price metric drops to a 2-week low Is the BTC bull market over?

Bitcoin price has dropped to a worrying low, leading some traders to throw in the towel and claim the bull run is over.

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Bitcoin bulls refuse to flip bearish despite the $53,300 retest

BTC derivatives continue to show moderate bullishness, creating a positive outlook for reclaiming $60,000 soon.

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Over 75% of Bitcoin short-term holders in profit as BTC breaches $67K

Bitcoin price is finally seeing some relief, but it faces significant resistance at the $68,000 mark, which would trigger over $700 million worth of short liquidations.

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US leads $1.35B weekly surge in digital asset inflows CoinShares

CoinShares reports an unprecedented inflow into digital asset investment products, signaling growing investor confidence and positive market sentiment.

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3 ways futures traders can use leverage and avoid liquidation losses

Pro traders use a combination of futures trading strategies to generate profits while limiting their liquidation risk.

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Bitcoin Forming A Signal Thats Usually Very Bullish, Analyst Says

An analyst has pointed out how Bitcoin is back above the cost basis of the short-term holders, a sign that can be bullish for the asset. Bitcoin Is Back Above The Realized Price Of Short-Term Holders As explained by CryptoQuant community manager Maartunn in a new post on X, BTC has reclaimed the Realized Price [...]

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Bitcoin Bears Crushed: $100M In Crypto Shorts See Flush As BTC Breaks $63,000

Data shows the cryptocurrency derivatives market has registered significant liquidations after the Bitcoin rally above the $63,000 mark. Bitcoin Rally Has Resulted In Short Liquidations On Derivatives Market According to data from CoinGlass, the latest volatility in the cryptocurrency market has led to large liquidations on the derivatives side. “Liquidation” here naturally refers to the process that any open contract undergoes where its platform forcibly closes it off after it has amassed losses of a certain degree. Related Reading: Bitcoin Recovery Stalls As HODLers Apply Selling Pressure The table below shows how the derivatives liquidations have looked during the last 24 hours: It would appear that the cryptocurrency derivatives market has registered total liquidations of $126 million in the past day. Out of these, almost $101 million of the contracts were short ones. This figure is equivalent to more than 80% of the total, implying that these investors betting on a bearish outcome for the market were the most heavily affected by the latest volatility. This naturally makes sense, as assets across the sector have seen green returns in this window, led by Bitcoin’s rally. A mass liquidation event like this latest one is popularly called a “squeeze“, and as shorts were the side that contributed to a majority of these liquidations, the squeeze would be known as a “short squeeze.” During a squeeze, liquidations end up feeding further into the price move that caused them, thus unleashing a cascade of further liquidations. As such, the sharp price surge in the past day would in part be fueled by the short squeeze. Related Reading: Bitcoin Crash Forced Weak Hands Into Largest Loss-Taking Since 2022 Lows: Report As for the breakdown of this latest squeeze for the various symbols, it would seem like Bitcoin has come out on top like usual with around $45 million in liquidations. Ethereum (ETH) and Solana (SOL) have made up the rest of the top three with $24 million and $8 million in liquidations, respectively. Interestingly, while most of the sector has seen the dominance of short liquidations, XRP (XRP) on fourth has seen longs edge out instead. This may be down to the fact that the coin has overall only moved sideways while the rest have rallied. BTC Has Managed To Reclaim The $62,000 Support Level With the latest rally, Bitcoin has been able to make some significant recovery, with its price even briefly surging above the $63,000 level earlier in the day. The chart below shows what the coin’s surge has looked like: According to data from the market intelligence platform IntoTheBlock, Bitcoin is now floating above the significant on-chain support level of $62,000. “While resistance is strong above, enough bullish momentum can prevent selling pressure,” notes the analytics firm. Featured image from Dall-E, CoinGlass.com, IntoTheBlock.com, chart from TradingView.com

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Bitcoin Crash Forced Weak Hands Into Largest Loss-Taking Since 2022 Lows: Report

A new report from Glassnode has revealed that the Bitcoin short-term holders took part in the largest loss-taking event since 2022 in the recent crash. Bitcoin Short-Term Holders Have Realized Huge Losses Recently According to the latest weekly report from Glassnode, less than 1% of trading days in the cryptocurrency’s history have seen the short-term holders taking higher losses than during the latest event. The “short-term holders” (STHs) here refer to the Bitcoin investors who bought their coins within the past 155 days. This cohort makes up one of the two main market divisions based on holding time, with the other group being called the “long-term holders” (LTHs). Statistically, the longer an investor holds onto their coins, the less likely they become to sell them at any point. As such, the LTHs reflect the stubborn side of the market, which can weather through crashes and rallies, while the STHs include the weak hands that easily react to FUD or FOMO. Related Reading: Chainlink Traders Capitulate After 10% Plunge: Bottom Here? Given this fact, it’s not unexpected that this latter cohort has again shown a strong reaction to the recent volatility in the Bitcoin price. And since it’s been a crash, the STHs have been panic selling at a loss. The below chart shows the trend in the Bitcoin Realized Loss specifically for the STHs over the past few years: The Realized Loss here is an indicator that keeps track of the total loss the STHs realize through their selling. Also, note that the metric is “entity-adjusted,” meaning that the metric includes the data for entities instead of addresses. An entity refers to a cluster of addresses that Glassnode has determined to belong to the same investor through its analysis. Transactions made between the wallets of the same investor would naturally not correspond to any real “loss-taking,” so excluding them from the data makes sense. As is visible in the graph, the Bitcoin STH Realized Loss registered a spike during the latest market downturn, implying that these investors made large transactions at a loss. At the height of this capitulation event, the indicator’s value hit $595 million, the largest loss-taking the cohort has shown since the FTX collapse that led to the bottom of the 2022 bear market. Related Reading: Bitcoin Now Forming Pattern That Last Led To It Blasting Off “Furthermore, only 52 out of 5655 trading days (< 1%) have recorded a larger daily loss value, highlighting the severity of this correction in dollar terms,” reads the report. From the chart, it would appear that large spikes in the metric have come around at least local bottoms in the price, so this loss-taking event may have also formed another bottom for Bitcoin. BTC Price At the time of writing, Bitcoin is trading at around $58,800, up 3% over the past week. Featured image from Dall-E, Glassnode.com, chart from TradingView.com

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Bitcoin traders under pressure after deepest correction since 2022 erases profits

83% of short-term Bitcoin traders saw losses after BTC price recorded its deepest drawdown since 2022.

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