While recent market activity has sparked some short-term selling, Joao Wedson, head of crypto firm Alphractal, maintains a strong long-term bullish outlook.
He believes the broader sentiment among major investors remains optimistic despite some light profit-taking.
Wedson’s analysis centers on a key metric that tracks how the top 20% of traders—those with the highest margin balances—are positioning themselves.
The ratio of long to short trades among these elite players dipped slightly from 2.1, suggesting some are locking in gains or reducing exposure after Bitcoin’s recent rally. However, with the indicator still holding above 2.5, the majority appear confident in a continued upward trend.
What’s shifting, according to Wedson, is the focus: many high-cap investors are reallocating from Bitcoin into altcoins like Ethereum, leading to choppy price action and what he describes as deceptive volatility across the board. These rapid shifts, he warns, are catching traders off guard and creating false signals in intraday trading.
One project he’s especially bullish on is Polkadot (DOT). Wedson believes DOT is on the verge of breaking out of its accumulation zone, brushing off recent long liquidations as irrelevant noise. “For DOT, all signs point upward,” he asserted, signaling confidence in its next move.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/despite-profit-taking-big-traders-stay-bullish-on-crypto/