Despite Bitcoin's massive drop from $52K down to around $45k to $46k, traders on Bitfinex remain bullish towards the cryptocurrency. The crypto market is unlike most markets, namely currency and the stock market. Why are traders so bullish on Bitcoin?
Bearish Cryptocurrencies and $SOL
Most of the time, when a drop happens, it is then met with a little bull trap before plunging even lower. As of the moment, however, there still hasn't been much movement with Bitcoin as the coin is trading consistently around $45k-$46k mark. The same, however, isn't quite true with other cryptocurrencies.
While the market is certainly still in quite a questionable position, there have still been some cryptocurrencies that have been performing. One of these cryptocurrencies is $SOL which saw massive spikes in value despite the bearish Bitcoin. Although $SOL did drop a little, it was then met with yet another spike.
Spotting a Crypto Pump
Monitoring crypto pumps is also very important since they allow users to either ride the pump or learn more about the indicators that could point towards a pump in the future. Learning how to spot a crypto pump takes a lot of research, but luckily, there are resources online that might give enough information to point potential investors or traders in the right place.
However, it is important for traders or investors to DYOR or research before involving themselves in any investment or trading decision. This is especially true when it comes to crypto since the market is still quite unknown for a lot of people.
NFT Games and Bitcoin Interest
With NFT games like "Axie Infinity" becoming more and more popular to the general public, cryptocurrency has also started to gain traction. After the previous extremely bullish Dogecoin, a lot of traders and investors have begun to look towards $DOGE, $BTC, and the cryptocurrency market in general.
As of the moment, despite the drop in price of Bitcoin, the market has still remained not that extremely affected. As seen on WhaleBot Alerts on Telegram, 98% of traders on Bitfinex remain in the long position of Bitcoin. Although this does not speak to the general psychology of the whole market, it is still a significant figure.
Bitfinex Traders Longs
Aside from $BTC, traders on Bitfinex are 70% long on Ethereum and 66% long on LTC. However, when it comes to Binance, $Bitcoin isn't the coin with the highest long backers. The data shows that Binance traders are 78.74% long on $XRP/USDT.
When it comes to interest in $BTC, Binance still takes the top spot at $2.2 billion, followed by FTX at a whopping 1.7 Billion. Bitmex, on the other hand, has $601.9 million in open interest on $BTC. Aside from Bitmex, Deribit, OKEx, and Huobi each have significant interests in $BTC as well. The total open interest in $BTC is at $6.5 billion.
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Written by Urian B.