Bitcoin's price breaking through the $65,000 level triggered the liquidation of highly leveraged short positions. According to blockchain data, a major player holding approximately $117 million in Bitcoin short positions was forced to close positions worth $23.36 million during this surge.
It is reported that after the liquidation, the aforementioned major investor still maintains a short position of roughly 1,440 $BTC, currently valued at $93.21 million. The estimated liquidation price for the open position is around $65,042. It is presumed that if Bitcoin's price remains above this level or continues its upward trend, pressure for liquidation of the position could intensify.
On the other hand, blockchain analytics platform Glassnode shared important data regarding the behavior of long-term investors in the Bitcoin market. According to Glassnode, "strong players" in the market, i.e., investors who tend to hold their assets long-term despite price fluctuations, continue to accumulate Bitcoin.
The platform stated that market bottoms are typically formed when profit-taking slows down and high-conviction investors begin buying. It noted that the current market structure resembles, in some aspects, the bottoming process observed in 2022.
According to Glassnode data, the largest increase in the amount of Bitcoin held by high-conviction investors occurred in January, when the price of $BTC fell to around $60,000.
*This is not investment advice.
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