Distinguished crypto analytics agency Glassnode says Bitcoin is in a long-lasting uptrend powered by merchants who’re nonetheless doubting the energy of BTC.
In a brand new submit on the social media platform X, the analytics agency says Bitcoin’s present bull run seems very totally different from the one witnessed in 2021 when BTC bulls have been utilizing extreme leverage to drive up the worth of the crypto king.
In response to Glassnode, bears who’re shorting BTC are getting liquidated, triggering brief squeezes and offering gas for Bitcoin rallies.
A brief squeeze occurs when merchants who borrow an asset at a sure worth in hopes of promoting it for decrease to pocket the distinction are pressured to purchase again the belongings they borrowed as momentum strikes in opposition to them, triggering additional rallies.
Says Glassnode,
“It’s value noting that at each Bitcoin ATH (all-time excessive) peaks in 2021, lengthy merchants dominated liquidation volumes, as leveraged positions have been force-closed inside the intra-day volatility.
As such, seeing such a powerful dominance of directional brief merchants being liquidated suggests many merchants have been betting in opposition to the prevailing uptrend since October.”
Glassnode additionally notes that Bitcoin is shifting out and in of crypto exchanges at a charge harking back to November 2021, when BTC printed its all-time excessive of about $69,000.
“The entire quantity of Bitcoin deposits and withdrawals to exchanges has continued to develop, reaching a staggering $5.57 billion in every day quantity flowing out and in of exchanges, rivaling exercise seen in the course of the November [2021] market all-time excessive.”
At time of writing, BTC is buying and selling at $61,825.
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