The analytical firm Alphractal has released a new analysis of the Bitcoin market, highlighting the activity of short-term investors and the associated increase in risks.
Short-Term Investors and Their Activity
According to Alphractal's data, short-term investors have begun aggressively accumulating Bitcoin, with their purchasing strategy lacking coherence. The realized price for this group has now surpassed $107,000, indicating they are buying at relatively high prices.
Risks for Investors
The analysis warns that a drop below the $107,000 level could trigger new pessimism in the market. Alphractal noted that many exchanges have significant liquidation pools below this level, especially affecting highly leveraged investors.
Historical Parallels and Purchasing Strategies
It was noted that the recent price movement towards $124,000 represents a 'classic bull trap,' as the market hunts for liquidity. Alphractal added that while low levels may induce fear, in the past, they have often led to moments of strategic accumulation.
Alphractal's analysis emphasizes the challenging situation for short-term investors in the current cycle, with price drops posing both risks and opportunities for more strategic investments.
