The price of the leading cryptocurrency, Bitcoin [BTC], yet might not be able to sustain the $42,000 support level, and for many, this is often a rather bearish sign. Interestingly, the downward move occurred shortly after Saudi Aramco, KSA’s largest oil exporter, denied claiming to start out mining Bitcoin.
Top traders at exchanges seized the chance to feature leverage-long positions, a transparent bullishness indicator. Additionally, margin traders are increasing their stablecoin borrowing, revealing that the whales and professional traders expect more upside from cryptocurrencies.
The 24% weekly rally that took Bitcoin from $34k to its highest level since 20th May was fueled by a 30% surge within the number of “active entities,” consistent with Glassnode. This indicator could have triggered these savvy traders to extend their positions despite the lackluster price performance.
Bitcoin Buying Under $40k And Selling Near To $42k
Notice how OKEx top trades have hiked their Bitcoin longs from 0.68 on 31st July to 1.16 two days later. A 0.68 ratio indicates those whales and pro traders’ long positions were 32% smaller than their respective short bets, positions that benefited from a price decrease.
While on the other hand, the 1.16 long-to-short favored bull positions by 16% and reflected confidence whilst the Bitcoin price dropped below $40k on 2nd August.
However, there’s no way to know if those traders closed short positions or effectively added longs. To better understand this movement, analyzing margin lending data can prove to be a good option.