Massive Bitcoin (BTC) Longs appear on Holiday Crypto Market, what it’s all about

The crypto-analysis agency Santiment continues to offer a number of interesting statistics on the chain. Thus, according to latest data, today, July 4 and US Independence Day, there was a massive increase in the number of long positions in Bitcoin (BTC) on stock exchanges. This signal is traditionally considered a warning about the bullish liquidation of bears. As a result of the formation of a large number of long positions, the average funding rate for perpetual BTC futures multiplied in recent days and is now 0.0033%.

🤞 In the early hours of # 4thjuly2022 in the US there has been a massive upswing #lengths on stock exchanges in the last hour. Trade optimism often correlates with holidays, which means that there must be a greater degree of caution when whales punish the overzealous. 🐳 pic.twitter.com/HJvb8QRjAQ

– Santiment (@santimentfeed) July 4, 2022

At the same time, increased interest and similar bets were observed to a greater extent only on Bitcoin, as altcoins on the day of the party withdrew into the background.

“Smart” money acts quietly and cautiously

Another interesting one insight shared by Santiment is that the largest purchases of Bitcoin whales only happen after extremely small price movements, literally $ 100- $ 200 upwards, which keeps prices dormant. That said, after each such increase in transactions of more than $ 100,000 or more than $ 1 million, the Bitcoin price has consistently fallen.

🐳 The vast majority of the largest spikes enter #Bitcoin Whale transactions in the last week have happened after small $ 100 to $ 200 $ BTC price gains. Prices have since fallen after each of these temporary increases in $ 100k + or $ 1m + transactions. pic.twitter.com/ZedwfJZBum

– Santiment (@santimentfeed) July 4, 2022

Perhaps the optimism in the market is due to the holiday mood of investors, but one should be careful when using new information that emerges. Bitcoin’s current position seems very tempting to buy, which on the one hand is exactly what the whales do. But do not forget that we are just entering the capitulation / accumulation phase, and it would not be surprising if the crypto market gets an unexpected 10% pushed down from these levels, or that the same whales will close their positions to you, after having previously accelerated the price increase and then repurchase your liquidations.