Massive Shorts Expected for BTC If Below $30K Dip Happens
- If BTC falls below $30k, a massive BTC short might happen.
- This is revealed based on On-chain data by Santiment.
- Also, more than 40k BTCs were moved to exchanges recently.
The global crypto market has not yet woken up from its bad state. It is trading 5.6% down over the last day. The past 24 hours price value of the majority of cryptocurrencies flashed red, where Bitcoin plunged to $31,638.93. Also, BTC trades 5.4% down, with a market cap of over $6 trillion.
Adding to the dilemma, data perceived from the funding rate shows that a massive amount of shorts are coming in if BTC falls below $30k for the first time in about a year. On-chain data provider Santiment tweeted this appalling news.
Funding rate data indicates a massive amount of shorts are coming in after #Bitcoin fell below $30k for the first time in about a year. Our latest video covers this, trader pain, weak hands exiting, and plenty more as we figure out what’s next! https://t.co/KOeItPxg44 pic.twitter.com/afHkpbB5V6
— Santiment (@santimentfeed) May 10, 2022
In detail, BTC was hovering at around $31k in the middle of May 2021, and also in July 2021. Now, with the descending pattern of BTC, crypto enthusiasts remark that history is going to repeat itself. However, the interest rate hike, announced by the US Federal Open Market Committee (FOMC), is one of the assumed reasons for the bearish crypto market.
As explained by Santiment, BTC dipped 26.5%, whereas ETH dipped 30% and SOL to 40% in the past 30 days. However, for average traders, it is an expected good time to buy at least at a much smaller risk.
Additionally, the data shows that over 40,000 Bitcoins were moved to crypto exchanges on Monday, marking the largest intraday inflow since December 2019. This indicates large polarization in the market.
Also, other On-chain data reports that BTC whales have been accumulating huge amounts of BTCs on the exchanges. This resulted in the all-exchange inflow of BTC reaching a 1-year high.
More significantly, the current stage of the crypto market is expected to prevail, creating many weak hand investors. Moreover, the US equity market is also moving downwards, barely showing any signs of a U-turn.
Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CoinQuora. No information in this article should be interpreted as investment advice. CoinQuora encourages all users to do their own research before investing in cryptocurrencies.
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