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BitcoinSistemi 2025-01-23 21:27:08

Analysis Company Warns: “This Level in Bitcoin Pulls Like a Magnet, Massive Liquidation May Occur”

Cryptocurrency analytics firm Alphractal has released its latest assessment of Bitcoin (BTC), outlining critical trends in trading behavior and leverage positions that could signal impending volatility. Alphractal notes that there has been an increase in short positions in Bitcoin, with liquidation levels clustered above $110,000. With selling pressure prevailing in the market, the firm warns of a possible sharp upward price move designed to liquidate these shorts. “Such a move could create momentary euphoria online,” Alphractal said. However, they noted that in the long term, most of the leveraged positions continue to be long positions, indicating more bullish sentiment among traders. Alphractal also revealed stark differences in leveraged trading activity between Bitcoin and Ethereum (ETH). According to the firm, whales on Ethereum are twice as likely to engage in long positions compared to retail investors, showing the highest Whale – Retail Delta metric among altcoins. For Bitcoin, the Whale to Retail Delta ratio is significantly lower at 0.18, indicating that interest in long positions among whales is similar to that of retail investors. Related News: Binance Founder CZ Speaks Out After Critical New Development: “If This Is True, It Means Bitcoin Strategic Reserve Is Confirmed” Alphractal is predicting increased volatility on Ethereum due to high leverage interest among whales, which the firm suggests is driven by efforts to liquidate short positions around $3,600, a key level where many bearish traders may face liquidation. The analysis also points to a sharp decline in individual interest in Bitcoin, as evidenced by the “Holdings Up to 1 Month” metric, which tracks the amount of Bitcoin held by new short-term holders and is typically associated with moments of peak market enthusiasm. Based on current metrics, Alphractal is predicting a potential consolidation or local top for Bitcoin in the $110,000-$111,000 range. The firm suggests that this price level could act as a magnet for traders positioning themselves for the next significant market move. *This is not investment advice. Continue Reading: Analysis Company Warns: “This Level in Bitcoin Pulls Like a Magnet, Massive Liquidation May Occur”

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