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The bearish phase for Bitcoin threatens to drag on. The collapse experienced by the market at the end of last week was the result of a massive liquidation of positions in the futures market.
However, spot players not only supported the negative trend, but are also preparing to provoke a new wave of sales. According to CryptoQuant, whales are once again bringing BTC to trading platforms. This is usually done for the subsequent sale of the asset.
Meanwhile, Binance is sending an important signal to industry peers. Despite the problems in relations with the British authorities, the company does not plan to retreat, but intends to achieve the right to legal work in the jurisdiction of the kingdom.
Trying to stay afloat
Bitcoin managed to quickly rebound after falling on Saturday night, December 4th. However, the volatility in the market weakened on Sunday, and today we see weak traders’ activity.
BTC sank to $ 48,240. In weekly terms, the capitalization of the leading digital currency fell more than 15% this afternoon to $ 911.565 billion. Ether (ETH) and Binance Coin (BNB) fell to $ 4,060 and $ 555.90, respectively. All top ten altcoins were also in the red zone. Solana (SOL), Cardano (ADA), XRP and Polkadot (DOT) retreated to $ 181, $ 1.30, $ 0.774 and $ 26.40.
The cost of all cryptocurrencies by the evening of December 6 fell to $ 2.221 trillion. Despite the losses of the past week, bitcoin still showed impressive growth in annual terms, analysts at Santiment emphasize. They remind – the S&P 500 index and gold in two years added 44% and 22%, while BTC soared by 563% (from $ 7,400) during this time.
Alarming Whale Swim
Large investors from December 5 again began to send bitcoin to exchanges. This not very pleasant signal was noticed by CryptoQuant. Most likely, we should expect a correction in the near future. Sales can begin at any time, so it would be wise to monitor the dynamics of whale activity and operate on data from the futures market.
The ViewBase platform also publishes alarming figures. In 24 hours, another 2,691 BTC worth $ 139.213 million were entered on the exchanges. The exchange balance of bitcoin has already grown to 6.2% of the total supply of cryptocurrency. Most likely, the reset could be preparation for the Christmas pump, often referred to by traders as the “Santa Claus Rally.”
OKEx Insights weekly notes that contracts with settlement dates of December 31, 2021 and March 25, 2022 show BTC prices in the region of $ 56,000 and $ 58,100. Technically, this means that investors are expecting higher values by the time the underlying futures expire. The growth in premiums also indicates the dominance of positive sentiment.
But it should be noted that the analysts’ report was published just before the fall in the spot market. Accordingly, today players in the derivatives market will be pessimistic – especially if Bitcoin cannot hold above $ 48,000-49,000 until the end of the session.
The long-to-short ratio on OKEx at the end of last week remained above 1.8 points, which indicates the continued bullish sentiment and the dominance of long-term bets.
Once again, we remind novice traders: when opening a long position (long) in the crypto derivatives market, it is necessarily balanced by a short one (short). The total number of longs must be equal to the total number of shorts. A low ratio indicates an increase in the number of market participants preferring short-term positions in order to quickly exit the game if the situation worsens.
Changpeng Zhao does not intend to retreat
The largest cryptocurrency exchange in the world – Binance – is determined and intends to obtain permission to work in the UK. Within 18 months, the trading floor plans to fulfill all the requirements of the regulators. Recall, by order of the supervisory authorities of the kingdom, Binance was forced to stop serving British traders.
Back in June, the UK Financial Conduct Authority (FCA) ordered Binance to end its operations in the local market as part of its anti-shady policy.
However, the CEO of the exchange, Changpeng Zhao, does not intend to back down. According to him, the crypto company will fulfill all the requirements of the authorities in the field of anti-money laundering legislation and the fight against the financing of terrorism and extremism.
To do this, Binance plans to open a subsidiary in the kingdom – modeled on Binance US. The office will employ about 200 people, including lawyers and professionals developing strategies for the UK market. If the FCA issues the necessary approvals, the exchange will present several innovative products to investors, including crypto futures.
In Europe, the platform also has serious problems. Earlier, Binance suspended trading in derivatives in the markets of Germany, Italy and Holland. In August, the British regulator FCA issued a statement that it was not able to control the operation of the exchange, and therefore the trading floor should leave the market.
Sources: CoinTelegraph, OKEx Insights, Santiment, CryptoQuant, ViewBase
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