Bitcoin (BTC) jumped $ 51,000 in support in the last 44 days. This can generally be interpreted as a positive development, especially considering that the $ 50,000 level represents a 75% increase in 2021.

However, cryptocurrency investors tend to be short-term and always overly optimistic. So the current story about Bitcoin is slowly turning down, but far from feeling, what story do the underlying principles tell?

However, there is a possibility that the latest decline was related to the expiration of the $ 1.55 billion options due on April 23rd. As Cointelegraph previously reported, Beers is advancing $ 340 million below $ 57,000. It may also explain why professional traders remain neutral despite a drop of 18% in the past eight days.

Bitcoin price on Coinbase, USD Source: TradingView
On the other hand, some analysts, such as Willie Wu, mentioned that the coal mining accident in China caused the bitcoin hash rate to plummet. This incident, combined with a power outage in the Xinjiang region of China, may have reduced the computing power of the Bitcoin network by 19% and exposed the heavy reliance on coal energy.

While critics rushed to criticize Bitcoin, Nick Carter, Co-founder of Coin Metrics, provided vigorous rebuttal of some of the major allegations. Carter notes that bitcoin mining, which is relatively portable, is concentrated in areas where electricity is not used and is cheap.

Moreover, although the gold mining industry is environmentally destructive and relies on diesel power, Bitcoin can be mined entirely using clean energy. Unlike precious metals, relocation of Bitcoin miners allows the use of previously wasted oil and gas resources.

However, professional traders did not add trades during the recent BTC price correction.

Professional traders do not buy or sell at any price level.
Large cryptocurrency exchanges provide long and short term position data for the best traders. This indicator is calculated by analyzing the consolidated positions of clients on spot, margin and futures contracts. Thus, it gives a clearer idea of ​​whether professional traders are leaning in an upward or downward direction.

It is important to note that from time to time there are differences in methodology between the different exchanges, so you should track changes rather than absolute numbers.

The best stock brokers. The relationship between long and short positions in bitcoins. Source: Bybt
The chart above shows that the major traders increased their positions between April 14th and 17th, while Bitcoin’s price was over $ 60K. On the one hand, these whales and their arbitrage schedules have remained relatively flat for the past five days.

It is worth noting that the current ratio of 1.49 in favor of longs on OKEx is still below the 1.75 level seen on April 17th. This data indicates that the major traders have cut their positions over the past five days.

A similar trend was seen at Binance, as the net buy to sell ratio among the major traders reached a peak of 1.25 on April 17th, albeit slightly in favor of buying, but the current index of 1.18 is in the lower range for the past three weeks.

Finally, major Huobi traders added long positions between April 14-18, but kept the 0.90 ratio stable.

Therefore, there is no doubt that the whales and arbitrage charts will not increase their long positions, although BTC is testing a support of $ 52,000 with a 20% correction from April 14th.

However, investors are advised to wait until Friday’s options expire before making any quick conclusions.

Source: CoinTelegraph

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