Analysts and traders have been waiting for the price correction. It is set to occur before a long uptrend. This trend will begin as soon as a new BTC price is set. It is one of the positive points of the current decline in the price of Bitcoin and Ethereum.
BTC and ETH market cap
What is the status of short and long trading in the current market?
As ETH and BTC prices fell, and their market trends temporarily reversed, the rate between Long trades and BitMEX exchange shorts became one-to-one. This change took place while in the previous days we saw an increase in the number of long trades. Once the rate is one-to-one, long trades will no longer increase short trades. Those looking for leverage in the current downtrend will no longer have to accept abnormal rates.
Given the current price of Bitcoin and Ethereum, the fundraising rates of perpetual contracts at the BitMax exchange are neither neutral nor negative. It could be what some investors hoped for in a bullish market.
Is this the last chance to buy valuable cryptocurrencies?
Some blockchain analysts believe that the current Bitcoin pullback is perfectly healthy and normal, and may also be one of the last opportunities to buy at a low price. According to the S2F model forecast for August 2020, $ 30,000 may be one of the last price drops, which we will experience before the start of the next uptrend. According to their idea, the best time to buy Bitcoin and Ethereum is before the market starts to climb.
Market whales and financial institutions are likely to be buying bitcoins and Ethereum. Unrealized retail traders may have sold their assets to these large buyers in a declining market. Some time ago, when Bitcoin set a new price record, small traders wrote on Twitter that they were waiting for a price below $ 30,000 to buy for the last time before the start of a long uptrend.
If you bought BTC at the time of the drop to $ 31.5 thousand, you would get an instant profit of 4.5%. Also, financial institutions that bought the digital currency at a time when the Bitcoin price was declining were making a profit in the same market cycle. The continuing downward trend in the price of Bitcoin has caused people to pay attention to it on virtual networks, reaching its highest level in the last six days. Traders consider this a good opportunity to buy BTC at the lowest price.
So maybe now is the best time to buy Bitcoin and Ethereum before the next uptrend starts.
What is the reason for the decrease in Ethereum inventory in exchange offices?
Record-breaking Ethereum price came as Ether cryptocurrency holdings in cryptocurrency exchanges hit a 15-month low.
On the morning of January 25, 2021, the price of Ethereum reached a record high of $ 1,470, breaking its previous record. Meanwhile, cryptocurrency whales and other users pulled their ETH cryptocurrency assets out of exchanges. They bring the stock of the market’s top altcoins to the lowest levels in 15 months.
Users seem to be buying Ethereum. They transfer purchased Ethereum to cold wallets or online wallets for long-term investment. Of course, some of these Ethers also belong to institutions. The Ethereum Trust now owns $ 3.3 billion, according to Gary Scale.
Meanwhile, the activity of ETH cryptocurrency whales has incremented especially in the last 24 hours. According to WhaleAlert, 86,000 Ethereum units worth $ 110 million were transferred during this period, most of which were outbound transactions from cryptocurrency exchanges such as Binance to anonymous wallets.