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Understanding Bitcoin's Sustainable Uptrend and Futures Liquidations

The well-known crypto analysis company Glassnode has pointed out that Bitcoin is experiencing a sustainable upward trend, while also identifying bearish liquidations.

According to leading crypto analytics company Glassnode, Bitcoin is currently on an upward trend due to traders who are doubtful about the strength of BTC.

Glassnode points out that this surge is different from the one seen earlier in 2021, where excessive leveraging was used to drive up the value of Bitcoin. The company states that pessimistic traders who are betting against BTC are being forced to close their positions, leading to short squeezes and contributing to the momentum of Bitcoin’s rallies.

Traders with Bearish Sentiment at Risk of Liquidation

According to Glassnode, short squeezes happen when traders take out a loan for an asset at a specific price with the goal of selling it for a lower price to earn a profit.

However, if the market turns against them, these traders are obligated to repurchase the borrowed assets, leading to additional surges in the market.

Glassnode’s analysis reveals that short traders have consistently been forced to liquidate their positions since October, implying that a significant number of traders have been betting against the current uptrend.

Exchange Activity: Inflows and Outflows

Furthermore, the movement of Bitcoin in and out of crypto exchanges is currently comparable to November 2021, a time when BTC achieved its record high of approximately $69,000. The overall amount of Bitcoin being deposited and withdrawn from exchanges has been increasing, with a daily flow of $5.57 billion.

This level of activity is similar to the peak observed in November 2021.

At present, the current trading price for Bitcoin is $61,825.

Opinion: The Longevity of Bitcoin’s Upward Trend

There are several significant factors that are responsible for the ongoing upward trend of Bitcoin.

The amount of Bitcoin being bought and sold on crypto exchanges is experiencing a notable increase, similar to the levels observed during its record-breaking peak in November 2021.

The observations indicate that the current surge in Bitcoin is distinct from the previous one in 2021, which heavily relied on leverage. The present upward trend seems to be influenced by traders who remain doubtful about the resilience of BTC.

Furthermore, it is important to keep in mind that market conditions and trends can shift quickly. Remaining informed and carefully evaluating research and analysis is crucial in making well-informed decisions.

Read More: Bitcoin Price Prediction 2024-2040

About Glassnode

Glassnode is a platform for analyzing blockchain data that offers comprehensive and easily understandable metrics on the current state of the cryptocurrency markets.

Its main focus is to transform complex blockchain data into information that can be easily understood by investors, traders, researchers, and analysts, helping them make informed decisions. Glassnode provides data for over 100 digital currencies and tokens.

Here are the key features provided by Glassnode:

  • Studio: The Studio feature grants users access to a wide range of charts that display on-chain and crypto financial metrics.
  • Catalog: The Metric Catalog, available within Glassnode Studio, offers a complete overview of all the metrics available on the platform.
  • Academy: Users can enhance their knowledge of on-chain metrics and crypto financial indicators by visiting the Glassnode Academy. This feature simplifies the learning process for users, making it easier for them to utilize the platform effectively.
  • Insights: Glassnode provides valuable insights into the crypto markets through regular reports and analysis. These insights help users stay informed about market trends and developments.
  • API: Glassnode also offers an API that enables developers to integrate its data into their own applications or systems. This allows for more flexibility and customization in utilizing Glassnode’s metrics and information.

With its user-friendly interface and comprehensive range of features, Glassnode is a powerful tool for anyone seeking in-depth analysis and understanding of the cryptocurrency markets.