{"id":2310,"date":"2022-07-21T06:03:49","date_gmt":"2022-07-21T05:03:49","guid":{"rendered":"https:\/\/tradersofcrypto.com\/news\/?p=2310"},"modified":"2022-07-21T06:03:49","modified_gmt":"2022-07-21T05:03:49","slug":"bitcoin-btc-treks-above-24000-shorting-becomes-riskier","status":"publish","type":"post","link":"https:\/\/tradersofcrypto.com\/news\/bitcoin-btc-treks-above-24000-shorting-becomes-riskier\/","title":{"rendered":"Bitcoin (BTC) Treks Above $24,000, Shorting Becomes Riskier"},"content":{"rendered":"\n<p><a href=\"https:\/\/tradersofcrypto.com\/news\/bitcoin-btc-extends-a-more-bullish-rally\/\">Bitcoin (BTC) continued to climb<\/a> new tiers each day as it bounced from recent lows. Mid-week, the leading coin extended its recovery to above $24,100. In this price range, BTC is now outside the \u201cfire sale\u201d zone of the Rainbow Chart, though accumulation may continue. BTC remained highly volatile, also moving down to the $23,600 range within an hour of reaching the day\u2019s peak.\u00a0<\/p>\n\n\n\n<p>Later, BTC retreated to $22,893.24, after news that Tesla, Inc. had divested 75% of its BTC holdings during Q2.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\"><a href=\"https:\/\/twitter.com\/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$BTC<\/a> Today&#39;s PA in a nutshell.<br><br>MM was baiting retail traders by making them believe something was going to happen when they were going to do the opposite. <br><br>TESLA news selling BTC only triggered it.<br><br>We spotted them building shorts, preparing the stop hunt and attacking the wick <a href=\"https:\/\/t.co\/5NTUp8KJSf\">pic.twitter.com\/5NTUp8KJSf<\/a><\/p>&mdash; CrypNuevo \ud83d\udd28 (@CrypNuevo) <a href=\"https:\/\/twitter.com\/CrypNuevo\/status\/1549882256042377222?ref_src=twsrc%5Etfw\">July 20, 2022<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>The Bitcoin volatility index also increased to 5.68% in the past 30 days, up from previous levels around 2.5%. At this price range, the percentage change of BTC is more significant. The recent rally happened with trading volumes above $40B in the past 24 hours. The Crypto Fear and Greed Index is at 31 points, still signaling fear though not extreme fear.<\/p>\n\n\n\n<p>BTC extended its market cap dominance above 42.6%, with ETH stepping back in dominance to 17.8%. Smaller assets also showed their potential to hold onto gains remains very low, with most assets stepping back after Tuesday\u2019s gains.<\/p>\n\n\n\n<p>The upward move led to liquidations of around $53M in BTC positions, with FTX leading the way in derivative trading. <a href=\"https:\/\/tradersofcrypto.com\/exchanges\/binance\/\">Binance has fallen to the third spot, with around $9M in liquidations<\/a>, of which more than 58.9% were short positions.<\/p>\n\n\n\n<p>The current rally is seen as a relief from recent lows, though not necessarily the start of a bull run to all-time highs. Predictions for the current rally envision BTC trekking to $28,000, while ETH may revisit the $1,800 range.<\/p>\n\n\n\n<p>The BTC climb continues along with the <a href=\"https:\/\/tradersofcrypto.com\/news\/ethereum-eth-rallies-on-news-of-merge-in-september\/\">positive performance of Ethereum (ETH)<\/a>, which recovered above $1,600. Altcoins followed suit, with strong performance from Polygon (MATIC) reaching closer to the $1 tier.\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>BTC Trend Still Questioned<\/strong><\/h3>\n\n\n\n<p>At this point, BTC may still turn down lower and retest the robustness of the current rally. A full reversal of the trend is not guaranteed and BTC is still far from returning to bullish territory.&nbsp;<\/p>\n\n\n\n<p>BTC short positions remain highly risky, with warnings to avoid shorting until as high as $33,000. With expectations of downturns, BTC may move to liquidate various tiers of short positions.&nbsp;<\/p>\n\n\n\n<p>The short-term trend remains bullish, with a timeframe to reach $28,000. However, predictions also include a potential return to the $17,000 level and a renewed bearish trend.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\"><a href=\"https:\/\/twitter.com\/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$BTC<\/a><br><br>Low timeframe trend is bullish, no doubt about it. High timeframe trend is still bearish and this is another lower high.<br><br>Ltf bearish confirmation is below 22k. Main target remains 15.8k-16.2k <a href=\"https:\/\/t.co\/QFFmsCKrw4\">pic.twitter.com\/QFFmsCKrw4<\/a><\/p>&mdash; il Capo Of Crypto (@CryptoCapo_) <a href=\"https:\/\/twitter.com\/CryptoCapo_\/status\/1549679478535864320?ref_src=twsrc%5Etfw\">July 20, 2022<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>In the meantime, miners selling and retail accumulation are setting up the longer-term predictions for BTC. Miners offloaded around 14K BTC in weeks, one of the biggest selling pressures since 2021.&nbsp;<\/p>\n\n\n\n<p>The unusual combination of increasing BTC prices and highly active altcoins is also looking like a summer relief rally, with the potential for short-term gains.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Bitcoin Holders: 50% at Loss<\/strong><\/h3>\n\n\n\n<p>The holding behavior remains strong, with around 50% of short-term holders having unrealized losses. The readiness to buy at any price led to some of the more expensive BTC being bought as a long-term bet.\u00a0<\/p>\n\n\n\n<p>Glassnode noted the current trend shows some of the coins are off the market for now, despite a previous retail capitulation.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">The monthly average of the Short-Term Net Unrealized Profit to Loss (STH-NUPL) ratio is at its lowest level since Nov-2011.<br><br>A NUPL value of -0.50 means that 50% of all value held by Short-Term Holders is currently at an unrealized loss.<br><br>Live Chart: <a href=\"https:\/\/t.co\/J679vRyLI9\">https:\/\/t.co\/J679vRyLI9<\/a> <a href=\"https:\/\/t.co\/94vcu74oyD\">pic.twitter.com\/94vcu74oyD<\/a><\/p>&mdash; glassnode (@glassnode) <a href=\"https:\/\/twitter.com\/glassnode\/status\/1549061563444862985?ref_src=twsrc%5Etfw\">July 18, 2022<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>The past three months were also a peak holding period for BTC, especially with renewed accumulation near the lows. The mix of trends for realized and unrealized losses was also taken as a signal for a market bottom, or at least a smaller probability for BTC to slide under $10,000.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Love this analysis &#8211; is the bullish turn nearly here!<a href=\"https:\/\/twitter.com\/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$BTC<\/a>  is in the process of breaking above 3 long-term pricing models:<br><br>-Realized Price (ave. cost basis)<br>-Long-Term Holder RP (Cost basis of LTHs)<br>-200-week MA<br>Courtesy of <a href=\"https:\/\/twitter.com\/glassnode?ref_src=twsrc%5Etfw\">@glassnode<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/bullrun?src=hash&amp;ref_src=twsrc%5Etfw\">#bullrun<\/a> or  <a href=\"https:\/\/twitter.com\/hashtag\/heartbreaker?src=hash&amp;ref_src=twsrc%5Etfw\">#heartbreaker<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw\">#Bitcoin<\/a> <a href=\"https:\/\/t.co\/SUVFbrz86L\">pic.twitter.com\/SUVFbrz86L<\/a><\/p>&mdash; BlockParty Trading (@blockpartytrade) <a href=\"https:\/\/twitter.com\/blockpartytrade\/status\/1549700986008215552?ref_src=twsrc%5Etfw\">July 20, 2022<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>If BTC starts a bigger recovery now, it will be one of the shortest periods with more significant unrealized losses. The 2020 bear market continued longer, with the exception of the rapid recovery from a brief dip under $4,000.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>DeFi Remains Stagnant<\/strong><\/h3>\n\n\n\n<p>Despite the rally of ETH, the funds locked in DeFi remain stagnant. Currently, ETH-based protocols still hold around $40B in value. Demand for high returns remains subdued, especially after the risks of loans on DeFi protocols.&nbsp;<\/p>\n\n\n\n<p>At the same time, DeFi remains safe from most loan liquidations and can continue at this baseline.&nbsp;<\/p>\n\n\n\n<p>Recently, Aave (AAVE) recovered briefly above the $100 tier, though it has fallen back toward $93. AAVE remains one of the tokens representing a large part of the funds locked on Ethereum.<\/p>\n\n\n\n<p>Stablecoins keep up their levels, with USDT and USDC remaining the most important assets for both centralized trading and DeFi. Even Neutrino USD is back to $0.99. USDD, the stablecoin issued by TRON (TRX), now covers close to 0.5% of the entire stablecoin supply.&nbsp;<\/p>\n\n\n\n<p>UST, the Terra LFG stablecoin, has not recovered and hovers around $0.04. While LUNC, or Luna Classic trading continues, the market is extremely risky. LUNC is at $0.00017, while LUNA, the new asset, trades around $2.07, within its usual range due to loss of trust and lack of new investments.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin (BTC) reached the $24,000 level but broke the rally to return under $23,000 on news of Tesla, Inc. selling most of its BTC.<\/p>\n","protected":false},"author":3,"featured_media":2311,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[12,6,507],"class_list":["post-2310","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorised","tag-btc","tag-eth","tag-lunc","entry"],"_links":{"self":[{"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/posts\/2310","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/comments?post=2310"}],"version-history":[{"count":0,"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/posts\/2310\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/media\/2311"}],"wp:attachment":[{"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/media?parent=2310"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/categories?post=2310"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/tags?post=2310"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}