Derivatives Positions Leading To One Direction

In the midst of a volatile Bitcoin (BTC) trade pattern in recent times, the traders are awaiting next major move. While the cryptocurrency is down nearly 4% over the last week, Bitcoin is up around 3% in last 24 hours. This explains the extent of volatility associated with the top asset in current cycle. Very recently, BTC reached its three month low of $18,400. Currently, BTC total market capitalization is at $366 billion, close to the three month low of $358 billion. Also, there are some interesting changes in the Bitcoin derivatives positions from whales.

More Bitcoin Short Positions On Derivatives Exchanges

In the recent times, there has been an increasing number of BTC short positions on derivatives exchanges. According to Crypto Quant, the short positions in derivatives is headed towards a price drop. Before the Ethereum Merge, there was a huge BTC withdrawal from Coinbase to derivative exchanges. Interestingly, this was right before there a huge drop in BTC price.

“The BTC holdings on the Derivatives Exchange increased just before dumping BTC.  Also, whales seem to have intentionally opened short positions on the Derivatives Exchange and lowered BTC prices.”

As of writing, BTC price stands at $19,121.44 up 2.40% in the last 24 hours, according to price tracking platform CoinMarketCap. Over the last week, the cryptocurrency rose to a high of $19,400. In this context, the BTC funding rates have been generally negative. Adding to this, the BTC whales have not altered their buying pattern in recent times. This could mean that they are awaiting a price drop or lack of support for price rise. Trends show the funding rates are overall negative, given the conservative position of whales.

Correlation With Macro Trends

This could also mean the Bitcoin whales are watching and waiting for these changes in the crypto winter environment. Also, the crypto market continues to grow more in relation with the stock market and macroeconomic indicators. The Federal Reserve continues to have a hawkish stance to curb inflation, which could have a negative impact on crypto prices.

Anvesh reports major developments around crypto adoption and trading opportunities. Having been associated with the industry since 2016, he is now a strong advocate of decentralized technologies. Anvesh is currently based in India. Follow Anvesh on Twitter at @AnveshReddyBTC and reach him out at [email protected]

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.