– Bitcoin unhedged shorts turned parabolic during the collapse of FTX and Luna as the result of bearish sentiment.
– Unhedged shorts remain at historical lows, indicating that investors don’t want to bet against Bitcoin due to its strong return this year.
– CryptoSlate recently analyzed Bitfinex whale movement cashing out 12,000 Bitcoin.
Bitcoin Unhedged Shorts at One-Year Lows
Recent analysis from CryptoSlate has revealed that 12,000 bitcoins were cashed out from Bitfinex whales. This has led to unhedged shorts for Bitcoin sitting at one-year lows due to bearish sentiment following the collapse of FTX and Luna exchanges.
Unhedged Shorts Parabolic During Collapse
When FTX and Luna collapsed, unhedged short positions for Bitcoin went parabolic due to the bearish sentiment in the crypto ecosystem at the time. However, despite this large increase in short positions, it is still lower than its historical average, suggesting that investors are not keen on betting against Bitcoin given its strong 70% year-to-date performance.
Bullish Sentiment Despite Short Positions
The data suggests that although there may be a surge in short positions following bad news in the crypto world, investors remain bullish on Bitcoin overall with prices continuing to rise despite these events. This indicates that even when bad news hits the market, investors are not ready to abandon their long positions on Bitcoin yet as they expect prices will recover eventually.
Bear Market According To Realized Price Metrics
In addition, CryptoSlate also found that according to realized price metrics bitcoin had broken a 900-day milestone stuck in a bear market trendline which could indicate further bullish momentum for BTC going forward as investor confidence returns.
Conclusion
Overall it seems that despite some negative news hitting crypto markets recently investor optimism remains high with prices continuing to stay above their historical averages and several bullish indicators emerging from realized price metrics suggesting an end to bitcoin’s bear market trendline soon
