Is the selling pressure in Bitcoin a return signal?

[Alice102030]

Blockchain analysis platform Santiment, in its latest post, revealed that Bitcoin investors have aggressively opened BTC short positions on cryptocurrency exchange Deribit and Binance. In the scenario put forward by Santiment, it was presented that the BTC price could move towards the $ 30,000 gate after the possible increase in the current short balance sheets. Santiment analysts point out that Bitcoin's economic selling situation has weakened, and that such returns have frequently occurred in the past. So much so that the Bitcoin price has increased by up to 10% from last week's lows. However, while there is no selling pressure yet, Bitcoin returned to the $ 26,600 band with a decrease of over 1.5% today. After the Fed kept the interest rate constant yesterday, strong signals that the interest rate increase could be continued in the coming periods caused the outflow to be erased. This day supported the negative outlook by causing last week's bottom purchases in the $25,000 region to turn into profit selling. The current global uncertainty continues to price in as Bitcoin and cryptocurrency markets are generally incomplete and its sale remains suspended. However, if a possible increase in reverse positions in response to the increase in weight in short positions above Santiment triggers statements, a short-term persistence of the Bitcoin price may be observed.

What do you think about this issue?

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[Oshosondy]

Blockchain analysis platform Santiment, in its latest post, revealed that Bitcoin investors have aggressively opened BTC short positions on cryptocurrency exchange Deribit and Binance.

Where is the link to the news?

In the scenario put forward by Santiment, it was presented that the BTC price could move towards the $ 30,000 gate after the possible increase in the current short balance sheets. Santiment analysts point out that Bitcoin's economic selling situation has weakened, and that such returns have frequently occurred in the past.

This is the opposite of short position.

What do you think about this issue?

I do not believe in what those analysts are saying because as one analyst is saying uptrend, the other analyst will say downtrend. Haven't you noticed that?

Haven't you seen analyst wrong before? They are only analysts, they may be right or wrong.

[Katy Laurence]

Selling pressure in Bitcoin (BTC) can indicate various things in the cryptocurrency market, but it's not necessarily a straightforward return signal. Here's what you should consider:

Market Dynamics: Selling pressure in Bitcoin can be a natural part of market dynamics. Traders and investors may decide to sell their Bitcoin for various reasons, such as profit-taking, risk management, or changing market sentiment. This selling pressure is a regular occurrence in any financial market.

Price Corrections: Periods of selling pressure often coincide with price corrections. Bitcoin, like other assets, experiences price fluctuations. These corrections can be healthy for the market, allowing it to find a more stable and sustainable price level after rapid increases.

Bearish Signals: While selling pressure alone isn't necessarily a return signal, it can be a part of a broader bearish trend. If selling pressure is persistent and leads to a significant downtrend in Bitcoin's price, it might be a signal that the market sentiment has turned bearish.

Market Sentiment: It's crucial to consider the broader market sentiment when interpreting selling pressure. News events, regulatory changes, macroeconomic factors, and investor sentiment can all influence whether selling pressure is temporary or indicative of a longer-term trend.

Technical Analysis: Traders often use technical analysis indicators, such as moving averages, trendlines, and support/resistance levels, to assess the significance of selling pressure. These tools can help determine if the market is experiencing a short-term pullback or if a more extended trend reversal is underway.

Fundamental Factors: Consider fundamental factors that might be driving selling pressure. For example, regulatory announcements, security breaches, or changes in market fundamentals can impact investor confidence and trigger selling.

Diversification: Selling pressure can also result from portfolio diversification. Investors may sell Bitcoin to allocate funds to other assets, spreading risk across their investment portfolio.

Long-Term vs. Short-Term Perspective: Your response to selling pressure should align with your investment goals and time horizon. Long-term investors may view selling pressure as an opportunity to accumulate more Bitcoin at a lower price, while short-term traders may adjust their positions based on market conditions.

[WillyAp]

Predictions and signals are mostly based on smoke and hot air.
Too many different factors influence the price.

One correlation is everpresent and that is the (pre Elon) twitter activity.

[Doan9269]

Bitcoin does not need a selling pressure before it move from one certain stage to another because it has always been volatile, the market remain unpredictable in most cases despite the way we run out our market research and analysis to see that everything works base on the speculated rate, we could get more if this indications as long as the market demands is being observed closely on a visible change, this could be the signal we get in Knowing the market direction maybe there's going to be more of bear or bull to our own profitable efforts on investment.

[Faisal2202]

It can and it can't be. Depends on many other factors because the price of BTC is not only measured using the pressure of selling and buying only in the short or long. As you do know, there are many other people involved in other types of trading in which they don't have to long or short which means we are not seeing the full data to measure the btc price according to pressure sentiment. I hope you understood what I just said.

Let's make it more simple, let's say, more people are taking short trades but fewer are taking long, this indicates that many people think that the market might go bearish because everyone is following that path so that path might be right. People are not taking short just because others are doing they are shorting on their analysis. And they should be.

We can use the short or long positions's data as an indicator to predict the BTC price or at least the fear in the market. But that would be partially accurate because you need more data and indicators to make your analysis or strategy of pressure indicators more profitable.

[KiaKia]

Be careful what you read online about Bitcoin, from popular people and analysts combine, the only place that this people has power is by using social media to spread rubbish and cause some panic into the heart of investors, whatever the selling pressure might be, which ever the whale that dumps Bitcoin might be this still means nothing, you need to understand that water happens with Bitcoin has happened before in the past, if you are into Bitcoin investment for the long term you don't need all these.

Be focus and avoid all these distractions, let your accumulation goal be the only thing you care about, I have panicked in the past and it was why I made some silly decisions, apart from Buying low and selling high, every other thing doesn't matter.

There are too many factors that affect Bitcoin price, if you are keeping tabs on them all you will end up stressing yourself out.

[yhiaali3]

Where is the selling pressure in Bitcoin? I have not seen anything. If the news is true, such pressure will occur in one or more exchanges by some futures traders. This will not affect the Bitcoin market.

Do not believe everything that is said on social media by analysts. They often use such news to direct the market in the direction they want. There are many analyzes but few of them are accurate.

These are just analyzes that may be good or disappointing. In addition, there are many surprising factors that occur and change the course of the analysis unexpectedly.

[Natsuu]

Do not believe everything that is said on social media by analysts. They often use such news to direct the market in the direction they want. There are many analyzes but few of them are accurate.

Yet many people still get swayed by such news and announcements. They browse on Twitter, see something negative, and go out of their house with fear. More often what will happen is they will doubt their initial investment.  They think they might lose their money because they get information that "something negative" will happen according to their social media feeds.

These fears will be passed on to their friends and online until more people become afraid. Will happen faster than expected like a domino effect, redirects to what people call selling pressure. The dominance of sellers over buyers. When they get out of their investment, they lose a possible profit because they are bailing out of their investment because of something they just heard on read.

[ZAINmalik75]

I think you are still in the learning phase, that's why you are asking such queries, but this is a good question, and I am glad you did ask it instead of just following it blindly. Let me explain it. Many analysts make analyses and share them on the so-called X Twitter. But you just cannot follow everyone, and I am not asking you to follow only one either. Because there, you just have to take the experience or get some idea of how they do it, like how they make analyses and what factors or strategies they are following to make their trades more accurate.

You can then compare their analyses and find the best analysis among many.

Selling pressure or buying pressure is a good indicator to judge the current market condition, but depending on only this indicator might not bring the expected results. That's why you have to follow or keep an eye on other factors too. And one more thing: the pressure you are watching is only in future trading, spot trading does not count in these pressure measurements.

This indicates that you cannot depend on this indicator alone, you also need to understand the overall market pressure, which can also be done with some indicators.

[BVeyron]

Blockchain analysis platform Santiment, in its latest post, revealed that Bitcoin investors have aggressively opened BTC short positions on cryptocurrency exchange Deribit and Binance. In the scenario put forward by Santiment, it was presented that the BTC price could move towards the $ 30,000 gate after the possible increase in the current short balance sheets. Santiment analysts point out that Bitcoin's economic selling situation has weakened, and that such returns have frequently occurred in the past. So much so that the Bitcoin price has increased by up to 10% from last week's lows. However, while there is no selling pressure yet, Bitcoin returned to the $ 26,600 band with a decrease of over 1.5% today. After the Fed kept the interest rate constant yesterday, strong signals that the interest rate increase could be continued in the coming periods caused the outflow to be erased. This day supported the negative outlook by causing last week's bottom purchases in the $25,000 region to turn into profit selling. The current global uncertainty continues to price in as Bitcoin and cryptocurrency markets are generally incomplete and its sale remains suspended. However, if a possible increase in reverse positions in response to the increase in weight in short positions above Santiment triggers statements, a short-term persistence of the Bitcoin price may be observed.

What do you think about this issue?

I think that such fluctuations will surely take place, but they won't change the overall tendency... As for really high rise of btc price, I suppose this is possible in a couple of years, but it requires patience: btc is a long-term investment (actually I'd rather not call it an investment - it's just like buying something valuable)... However, there is a risk of dollar (and other fiats) inflation, and in this case the price rise would literally mean nothing: BTC to USD ratio can increase not only due to BTC rise, but also due to USD fall.

[hugeblack]

After the Fed kept the interest rate constant yesterday, strong signals that the interest rate increase could be continued in the coming periods caused the outflow to be erased.

The current federal funds rate is in a target range between 5.25% - 5.5%, which is the highest in years, and with more economic indicators confirming that we have reached the peak, the interest rate will stabilize during the coming months, leading to starting to reduce it in the middle of next year, so we cannot say that there is a trend. At the present time, interest rates are increasing, which may be a positive signal for the markets.

This day supported the negative outlook by causing last week's bottom purchases in the $25,000 region to turn into profit selling. The current global uncertainty continues to price in as Bitcoin and cryptocurrency markets are generally incomplete and its sale remains suspended. However,

We are at the end of the year, which is often positive for the price, so we can say that either the price will enter a state of balance or it will be between the levels of $22,000 to $32,000 until the end of the year, with the possibility that we will be above $32,000, which is still possible.

Blockchain analysis platform Santiment, in its latest post, revealed that Bitcoin investors have aggressively opened BTC short positions on cryptocurrency exchange Deribit and Binance. In the scenario put forward by Santiment,

Investors in the Deribit and Binance exchanges will not affect the price of Bitcoin to the extent that it breaks a support or resistance level.
according to CMC deribit^[1] has untracked volume data which may be an indication that the article is paid, because I do not remember hearing them.

[1] https://coinmarketcap.com/exchanges/deribit/

[WillyAp]

Investors in the Deribit and Binance exchanges will not affect the price of Bitcoin to the extent that it breaks a support or resistance level.
according to CMC deribit^[1] has untracked volume data which may be an indication that the article is paid, because I do not remember hearing them.

[1] https://coinmarketcap.com/exchanges/deribit/

Resistance levels, moves to break out, fighting hard, those are buzzwords of smokesellers.
Bitcoin it itself lacks a spirit, its movement is driven by simple greed.

Trader could trade wheat there is more reliable data available for it.