{"id":34051,"date":"2023-12-11T17:53:09","date_gmt":"2023-12-11T21:53:09","guid":{"rendered":"http:\/\/cryptocornercafe.com\/cafe\/?p=34051"},"modified":"2023-12-11T17:53:09","modified_gmt":"2023-12-11T21:53:09","slug":"bitcoin-42000-support-under-pressure-as-short-position-inflows-soar","status":"publish","type":"post","link":"http:\/\/cryptocornercafe.com\/cafe\/2023\/12\/11\/bitcoin-42000-support-under-pressure-as-short-position-inflows-soar\/","title":{"rendered":"Bitcoin $42,000 Support Under Pressure As Short Position Inflows Soar"},"content":{"rendered":"

Bitcoin (BTC) recently experienced a sharp decline, tumbling towards $40,000<\/a> amid a broader sell-off across the cryptocurrency market. While the most significant token managed to recover some losses, currently trading 4% lower at $42,000, concerns persist regarding the potential for further downside price action before a potential recovery.<\/p>\n

Investors Show Caution With Short-BTC Position Inflows<\/h2>\n

According to a recent CoinShares report<\/a>, digital asset investment products witnessed their 11th consecutive week of inflows, totaling $43 million. Notably, there was a significant increase in short position inflows due to recent price appreciation and perceived downside risks.\u00a0<\/p>\n

Europe led with $43 million in inflows<\/a>, followed by the US with $14 million (with half in short positions). On the other hand, Hong Kong and Brazil experienced outflows of $8 million and $4.6 million, respectively.\u00a0<\/p>\n

Bitcoin remained the primary focus for investors, attracting $20 million in inflows, bringing the year-to-date inflows to $1.7 billion. Short-Bitcoin positions saw $8.6 million in inflows, suggesting some investors view the current price rises as unsustainable.\u00a0<\/p>\n

Ethereum <\/a>(ETH) also saw increased interest, with its sixth week of inflows totaling $10 million, marking a turnaround from previous outflows.<\/p>\n

Selling Pressure Mounts As Miners Decrease Bitcoin Holdings<\/h2>\n

According <\/a>to Satoshi Club, there are indications that miners are selling their Bitcoin holdings following the recent price drop. Data shows a significant decrease in miners\u2019 BTC holdings, with increasing flows to exchanges, suggesting selling pressure in the market.\u00a0<\/p>\n

Satoshi Club\u2019s analysis highlights that this trend could be attributed to the anticipated halving in 2024, which will reduce miners\u2019 rewards by half.\u00a0<\/p>\n

Additionally, Bitcoin\u2019s net unrealized profit\/loss, which indicates the investor profit ratio, has surpassed <\/a>0.5 for the first time since December 2021. This suggests that a significant portion of Bitcoin investments are currently profitable, potentially leading to increased selling pressure at current price highs.<\/p>\n

BTC\u2019s Bullish Structure Intact, But Deep Correction Threatens Run<\/p>\n

In the 1-day chart for Bitcoin, the current trading price is closely aligned with a support level. Despite briefly dipping below this level, Bitcoin has managed to recover<\/a> and trade above it, mitigating further declines.<\/p>\n

However, in the event of continued selling pressure and an inability to maintain its current price level, Bitcoin\u2019s next critical level of support would be $39,990.\u00a0<\/p>\n

It is worth noting that during the previous hype surrounding Bitcoin\u2019s milestone, many traders entered long positions below the current levels. This influx of long positions could trigger a liquidation hunt before a recovery ensues.<\/p>\n

If such a scenario unfolds, the hunt for liquidations could drive Bitcoin\u2019s price further down, potentially testing support levels at $38,700 and $37,800.<\/p>\n

On a positive note, Bitcoin\u2019s current bullish structure<\/a> would remain intact unless a significant correction occurs, pushing the price below the $29,900 level. This level began Bitcoin\u2019s current bull run in late October.<\/p>\n

The future outcome hinges on whether Bitcoin can successfully hold its nearest support levels and facilitate a recovery that shifts the focus from hunting long positions to hunting short sellers, eventually regaining previously conquered territories.<\/p>\n

Featured image from Shutterstock, chart from TradingView.com<\/p>","protected":false},"excerpt":{"rendered":"

<\/p>\n

Bitcoin (BTC) recently experienced a sharp decline, tumbling towards $40,000<\/a> amid a broader sell-off across the cryptocurrency market. While the most significant token managed to recover some losses, currently trading 4% lower at $42,000, concerns persist regarding the potential for further downside price action before a potential recovery.<\/p>\n

Investors Show Caution With Short-BTC Position Inflows<\/h2>\n

According to a recent CoinShares report<\/a>, digital asset investment products witnessed their 11th consecutive week of inflows, totaling $43 million. Notably, there was a significant increase in short position inflows due to recent price appreciation and perceived downside risks.\u00a0<\/p>\n

Europe led with $43 million in inflows<\/a>, followed by the US with $14 million (with half in short positions). On the other hand, Hong Kong and Brazil experienced outflows of $8 million and $4.6 million, respectively.\u00a0<\/p>\n

Bitcoin remained the primary focus for investors, attracting $20 million in inflows, bringing the year-to-date inflows to $1.7 billion. Short-Bitcoin positions saw $8.6 million in inflows, suggesting some investors view the current price rises as unsustainable.\u00a0<\/p>\n

Ethereum <\/a>(ETH) also saw increased interest, with its sixth week of inflows totaling $10 million, marking a turnaround from previous outflows.<\/p>\n

Selling Pressure Mounts As Miners Decrease Bitcoin Holdings<\/h2>\n

According <\/a>to Satoshi Club, there are indications that miners are selling their Bitcoin holdings following the recent price drop. Data shows a significant decrease in miners\u2019 BTC holdings, with increasing flows to exchanges, suggesting selling pressure in the market.\u00a0<\/p>\n

Satoshi Club\u2019s analysis highlights that this trend could be attributed to the anticipated halving in 2024, which will reduce miners\u2019 rewards by half.\u00a0<\/p>\n

Additionally, Bitcoin\u2019s net unrealized profit\/loss, which indicates the investor profit ratio, has surpassed <\/a>0.5 for the first time since December 2021. This suggests that a significant portion of Bitcoin investments are currently profitable, potentially leading to increased selling pressure at current price highs.<\/p>\n

BTC\u2019s Bullish Structure Intact, But Deep Correction Threatens Run<\/p>\n

In the 1-day chart for Bitcoin, the current trading price is closely aligned with a support level. Despite briefly dipping below this level, Bitcoin has managed to recover<\/a> and trade above it, mitigating further declines.<\/p>\n

However, in the event of continued selling pressure and an inability to maintain its current price level, Bitcoin\u2019s next critical level of support would be $39,990.\u00a0<\/p>\n

It is worth noting that during the previous hype surrounding Bitcoin\u2019s milestone, many traders entered long positions below the current levels. This influx of long positions could trigger a liquidation hunt before a recovery ensues.<\/p>\n

If such a scenario unfolds, the hunt for liquidations could drive Bitcoin\u2019s price further down, potentially testing support levels at $38,700 and $37,800.<\/p>\n

On a positive note, Bitcoin\u2019s current bullish structure<\/a> would remain intact unless a significant correction occurs, pushing the price below the $29,900 level. This level began Bitcoin\u2019s current bull run in late October.<\/p>\n

The future outcome hinges on whether Bitcoin can successfully hold its nearest support levels and facilitate a recovery that shifts the focus from hunting long positions to hunting short sellers, eventually regaining previously conquered territories.<\/p>\n

Featured image from Shutterstock, chart from TradingView.com<\/p>\n

<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[82],"tags":[],"class_list":["post-34051","post","type-post","status-publish","format-standard","hentry","category-blockchain"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/34051","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/comments?post=34051"}],"version-history":[{"count":1,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/34051\/revisions"}],"predecessor-version":[{"id":34058,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/34051\/revisions\/34058"}],"wp:attachment":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/media?parent=34051"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/categories?post=34051"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/tags?post=34051"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}