Professional traders are more experienced and know precisely how to play these FOMO-inducing situations.
Most investors fail to grasp that being a pro trader does not mean all the emerging trends are played profitably.
Thus, despite selling ahead of the price surge, top traders were not squeezed out of leveraged short positions.
Data show pro traders covered their shorts on Oct. 21 and they remain distanced from placing bullish bets.
Pro traders covered shorts but are unwilling to go long.
Suddenly, top traders decided to short as BTC broke the $12.5K resistance.
As Cointelegraph and Digital Assets Data show, the current 1.8% premium matches the same level seen three weeks ago as BTC hovered around $11.5K. This data is further evidence that top traders are not confident in buying BTC despite the 13% price increase since then.
Whenever traders perceive an increased risk of larger price oscillations, the indicator will shift higher.
Bitcoin's implied volatility had been in a downtrend during the past six weeks, but yesterday's move seems to have surprised options traders.
The sudden volatility spike and the consequent partial retrace to the current 64% level indicate that some traders were ill-positioned and had to close their positions abruptly.
3 key metrics and disinterest from pro traders hint at Bitcoin price sell-off
Published on Oct 23, 2020
by Cointele | Published on Coinage
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