Bitcoin (BTC) price soared 25% following Tesla’s $ 1.5 billion investment in BTC this week. Prior to the announcement, BTC performed 7.5% lower than Ether (ETH), but the numerous bullish events of the past few days have helped BTC hit a record high of $ 48,900.

Before Tesla’s announcement, the price of BTC had hovered between $ 30,000 and $ 41,500 for the past three weeks. Once the price is exceeded, people expect professional traders and arbitrage tables to follow the uptrend.

When BTC started its 25% move, many large traders opened short positions rather than long. Given that Bitcoin was praised by JPMorgan Chase’s co-chair this week, the regulator cleared Canadian BTC FNB’s approval, which looks risky.
Bitcoin and Ether USD price from Bitstamp. Source: NYDIG Digital Asset Data

Historical data shows that Bitcoin price trends tend to trade in Ethereum, which has been going on for several months. In addition to this bullish scenario, Bitcoin’s Lightning Network announced a record number of nodes with a Total Locked-In Value (TVL) of over $ 42 million.

Mastercard also announced that it would support cryptocurrency payments on its network until the end of 2021.

These bullish signals are in contrast to the long or short net positioning indicators provided by the major cryptocurrency exchanges.

Derived by analyzing the combined positions of the client in spot, perpetual and futures contracts, this indicator provides a clearer perspective on whether professional traders are bullish or bearish.

It is important to note that the methods sometimes vary between exchanges. Therefore, viewers should pay attention to changes rather than absolute numbers.
The long-short ratio of the best traders on the BTC exchange. Source:

Since Tesla’s announcement on February 8, major traders on various exchanges have kept their net positions relatively unchanged.

Before Bitcoin rose 25%, Binance’s preferred share quota was 1.33, which was the same as the previous week. The indicator hit a high of 1.53 on February 10, but has since fallen to 1.31.

On the other hand, Huobi’s main traders had an indicator of 0.74 prior to Feb. 8, which was unchanged for three consecutive days. On February 11th, when BTC rose from $ 44,000 to $ 48,000, these traders began to increase their net long positions, reaching the current level of 0.80. While this level of net short position of 20% is still conducive to it, it has still been above the 0.75 level as of Jan 29.

Prior to the news from Tesla, major OKEx traders were net long 14%. Despite regaining 47% of their net short positions on the same day, the indicator fell back to 1.03 in the last four days. Currently, OKEx traders are still well below the net long position of 52% two weeks ago.
The stakes can attract the best traders

Top traders can also exchange their BTC for exchanges to look for better income opportunities. Hence, it can be absurd to assume that they entered a short position simply by monitoring the central exchange.

Given the current situation, the long and short indicators are not showing extreme net long positions from arbitrage counters, market makers and whales. The balanced derivatives market shows that if BTC continues to rise to $ 50,000 and above, there is enough room for buying activity.

The opinions and opinions expressed herein are those of the author only and do not necessarily reflect the views of Cointelegraph. Every investment and every commercial activity involves risks. When making a decision, you must do your own research.

Source: CoinTelegraph