Bitcoin (Bitcoin) The recent weeks have caused huge pain to the bulls, and now, the new data shows how much.
In a tweet on January 10, the on-chain analytics company Glassnode disclose Those who crave BTC suffered a repeat in May last year, when BTC/USD began to fall to $30,000.
Long traders failed to “grab the knife”
According to Glassnode’s Long Liquidation Advantage Index, “most” liquidation in the New Year involves long positions.
Given the overall trend of Bitcoin since the end of November, this is not surprising, but in terms of bulls and bears, the magnitude of the losses in the past few weeks has remained the same as in May.
The researchers commented: “Bitcoin’s long liquidation advantage has reached 69%, which is the highest level since the deleveraging event in May 2021.”
“This means that most of the liquidation of the cargo market in recent cycles has been long traders trying to grab the knife.”
From the data point of view, the opposite trend pattern appeared in the period from late July to late November, and short positions have repeatedly become victims of unexpected bull markets.
Although long-term liquidation peaks do not always mark the bottom of local prices, people’s appetite for short-term improvement has been strong for a long time.
Bitcoin, as Cointelegraph Report, At the current price and strictly “oversold” according to historical standards.
“If we bounce here, I don’t believe we won’t re-examine these prices, but some short-term relief will be good,” Quantitative Analyst Benjamin Cowan Tweet Saturday as part of the intraday observation.
Cowan is commenting Crypto Fear and Greed IndexIt hit a rare low of 10/100 last weekend, indicating that market participants are “extremely fearful.”
Since bottoming out in the depths of the Great Depression in 2018, Bitcoin I have seen this oversold indicator only four times in 3k, 10k, 4k and 30k. Soon after obtaining these records, #Bitcoin Correspondingly, it rose by 340%, 17%, 1585%, and 141%. Full details: https://t.co/qtlKY9tQzS pic.twitter.com/oSpb3fTjKX
— CRYPTO₿IRB (@crypto_birb) January 8, 2022
Such events are often accompanied by a recovery in prices and sentiment, but the current lows are sad because the same price level a year ago was accompanied by the opposite phenomenon-93/100 or “extreme greed.”