Whales intensify sales and put pressure on BTC price.
High leverage increases volatility risks.
Caution is recommended in the face of electoral uncertainties.
The current cryptocurrency market scenario highlights a critical moment for Bitcoin, especially due to the intensification of traders’ monitoring of its price fluctuations. Recent observations of on-chain data indicate an alarming growth in Bitcoin leveraged positions, reaching levels never seen before, which raises concerns about possible high volatility in BTC.
This anxiety is amplified by the massive use of leverage by whales, who appear to be aggressively dumping their positions in the market. The motivation for such actions may be in the search for liquidity, a worrying sign that could influence downward pressure on the price of Bitcoin. This reality is corroborated by the dominant trading volume of large investors, who control more than 90% of the market in high-risk situations, in contrast to retail traders who frequently face liquidations.
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Analysis of the three-day sell-off heatmap revealed that volatility expectations were tied to the election results, potentially having a negative impact on Bitcoin’s price. Meanwhile, a slight discrepancy in Bitcoin prices relative to the close of the Chicago Mercantile Exchange (CME) sparked cautious optimism among traders over the weekend.
Still, even with a small divergence regarding the CME closure, analysts have advised caution, especially regarding the use of leverage in a period that precedes electoral uncertainty. The recommendation is to avoid excessive leverage in order to protect capital against unpredictable volatility and preserve resources in the face of possible adverse price movements.
At the time of publication, the price of Bitcoin was quoted at US$68.736,99, up 0,6% in the last 24 hours.
Disclaimer:
The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.
Bitcoins Stability Threatened by Selling Pressure from Whales