- Ah, the fickle nature of Bitcoin! Once basking in the glow of 99% profit, it now finds itself in the company of 76% of its holders, who are, alas, in the depths of unrealized loss. How delightfully tragic!
- Will this phase of profit-taking lead us into the abyss of deeper declines, or is it merely a charming consolidation before the next grand performance?
As the ever-astute AMBCrypto has noted, Bitcoin [BTC] encountered a formidable resistance at the lofty heights of $97K, only to be met with a sharp and rather dramatic rejection. The subsequent descent to $82K suggests yet another wave of profit-taking, as if the market were a stage and we were all mere players.
Despite this theatrical pullback, a staggering 76.08% of BTCâs supply remains in profitâits lowest in six monthsâindicating that most HODLers are still basking in the green light of fortune. How splendidly ironic!
Yet, we must not forget the 23% of the circulating supply languishing in unrealized lossâaround 4.56 million BTC. As more holders find themselves in this unfortunate predicament, some may choose to sell, hoping to limit their further losses. A most tragic choice indeed!
To navigate this treacherous sell-side liquidity, one must pay heed to the volume indicators, those fickle harbingers of market sentiment.
Although trading volume has surged by a staggering 178.22% to $43.12 billion, net deposits on exchanges have risen by 3.96%, revealing that sell-offs are, alas, outweighing buys across the grand stage of major exchanges.
With the buying pressure from U.S. investors remaining as low as a poet’s income amid economic uncertainty, it appears that retail buyers are not stepping forth to absorb the selling pressure. How dreadfully disappointing!
This could indicate the involvement of third-party players, perhaps institutions, pulling the strings behind the curtain, influencing the marketâs next act.
High-leverage risk in Bitcoin derivative trade
In the midst of this weak spot buying, Bitcoinâs Estimated Leverage Ratio (ELR), which had recently plummeted to a three-month low, has surged dramatically, as if it were a phoenix rising from the ashes of caution.
This indicates that derivatives traders are not de-leveraging, but rather increasing their leverage to embrace higher-risk positions. A most audacious gamble!
On the 9th of March, Bitcoin experienced a 6.41% drop to $80K, resulting in a staggering $195.86 million in liquidated long positions. A veritable tragedy for those caught in the act!
Institutional âdip-buyingâ is gaining traction, potentially setting the stage for a short squeeze. This could drive Bitcoin to retest the $85K resistance zone in the coming days, a most dramatic twist in our tale.
However, breaking through this resistance remains a Herculean task. Escalating sell-offs could lead to further liquidations, pushing Bitcoin below $80K once more. The plot thickens!
In summary, institutional capital is absorbing sell-side liquidity from traders breaking even after Bitcoinâs 17% weekly decline. Nonetheless, the risks associated with âdip-buyingâ remain elevated, a precarious dance on the edge of a precipice.
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2025-03-11 06:18