On November 30 open positions in crypto-related derivatives had reached their highs and that this situation usually leads to "squeezes", i.e. mass closure of positions with considerable price volatility, upwards or downwards.
The sell-off of these days coul have been widely predictable given the situation in derivatives.
I also reported that the guard level in bitcoin was 53,000 usd.
In fact, when this level was broken, a cascade of sales of all those positions that were obviously programmed to close at that threshold took place.
While derivatives are carrying on their insubstantial dramas, what is happening instead in the spot market, i.e. the actual cryptocurrency market?
What is happening in the spot market is that so far only 2.63% of coins under 3 months old have been sold, both in highs and sell-offs, including the latter.
This indicates that the availability of coins in this "age range" is still very high, 97%.
No one is going to sell their beloved coins, even after this latest sell-off, because the belief is still in favor of the likelihood of the market making new highs in the future.
The figure is also confirmed by the continued reduction in activity in the platforms, even during this sell-off.
Further confirming this is the weak increase in positive coin flows into the platforms (in green) compared to outflows (in red).
Compare this to the May sell-off (dashed red rectangle on the left), where inflows were at their highest, while outflows were almost non-existent.
In other words, this volatility in the derivatives market did not push spot market traders to move coins from wallets to platforms to sell them in panic. Holders, even of fairly recent coins, have remained impassive in the face of volatile quotes.
In conclusion, at the moment the sentiment is still completely calm, despite the volatility due to derivatives, and there is no change in the accumulation phase that I had described in the last post.
Thanks for reading.
Posted Using LeoFinance Beta