The Bitcoin market is observing an increase in short positions, reflecting a negative outlook among traders. Furthermore, the potential sale of large amounts of confiscated bitcoins by the UK government could also exert additional pressure on the cryptocurrency's value.
Current Trader Sentiments
Data from Binance on July 20 indicates that 54.03% of accounts are holding short positions against Bitcoin, while long positions account for 45.97%. This results in a long-to-short ratio of 0.85, indicating a bearish sentiment among traders.
Whale Inflows and UK Bitcoin Sell-Off
According to on-chain analytics from CryptoQuant, whale inflows to exchanges have surged sharply in recent days. Between July 14 and July 18, the 30-day sum of whale inflows increased from $28 billion to $45 billion. Additionally, the UK government is preparing to sell over £5 billion worth of seized bitcoins, which could have a significant impact on the market.
Analysis of Bitcoin Price Forecasts
The current price of Bitcoin stands at $117,927, down 0.28% on the day. The 24-hour trading volume reached $47.03 billion, a decrease of 25.71% compared to the previous period. The Bull Score Index from CryptoQuant shows an increase to 80, which may indicate potential local price shifts.
The decreasing sentiment among traders and large-scale sales of confiscated bitcoins in the UK could contribute to further declines in Bitcoin prices. It is essential to monitor the situation and its potential impact on the market.
