Key Points
- Bitcoin long positions are being targeted for liquidation, indicating a volatile trading environment.
- Demand for Bitcoin in the US is rising, with MSTR making a record purchase.
Bitcoin’s [BTC] long positions entered during the current uptrend are being rapidly liquidated, leading to sudden exits even as the price continues to rise.
This ongoing cycle suggests a volatile trading environment where long positions are swiftly targeted, particularly after Bitcoin hit the $90K level.
Market Sentiment and Bitcoin
The Short-Term Holders’ SOPR (STH SOPR) analysis suggests a balanced market sentiment. It is currently positioned midway between the extremes of greed and fear, indicating potential for further price increases without immediate risk of a major correction.
Historically, the SOPR entering ‘extreme greed’ usually presages a pullback as the market becomes overheated. On the other hand, ‘extreme fear’ zones have traditionally been where significant market lows form, presenting prime buying opportunities.
Rising Demand and MSTR’s Record Purchase
Post-elections in the US have continued to spark an uptick in Bitcoin demand, as indicated by the surging Coinbase Premium Index. This gauge reflects a heightened buying fervor among US traders, sustaining the current bull run.
Institutions have continued to buy, with Michael Saylor announcing plans to raise $42 Billion to buy Bitcoin much before MicroStrategy’s 3-year plan. MSTR has already bought 66% of next year’s $10 Billion target in just 10 days.
This rise in demand and MSTR’s continued buying suggests that it is still not late to buy BTC for the long-term run.