Bitcoin traders driving the price with aggressive shorting

BTC price is trading at around $27,000 at the time of drafting this article. It was highest in 2023 at $31k. There is a chance that it may again touch the highest mark, assuming traders look too aggressively. Simply put, their shorting adds to on-chain activities, which is often associated with price rises. However, the token was last seen slipping down by 0.38% in the last 24 hours.

Santiment has explained that traders have started taking strong stands on Binance and Deribit, contributing to liquidity that could drive prices a little higher. As a matter of fact, prices have risen by 4% since such activities came to light. Price reversal stands a chance only if the trend continues.

Another factor that is contributing to this process is an increase in the active addresses of Bitcoin. The number has reached its highest in the last 5 months. What makes the increase in activity and addresses interesting is the fact that it has been happening despite the prices being somewhat stagnant during the crypto winter. Those days could be over with institutional adoption entering the segment.

The level of impact that it will have is unknown, but institutional traders on board the BTC ship is a positive sign.

For instance, Fidelity and BlackRock have applied for spot Bitcoin ETFs. Approval for the application is pending with the US Security and Exchange Commission (SEC). Bitcoin adoption is gaining further traction with partners like Nomura, a Japanese banking giant, unveiling its Bitcoin fund. It has been titled Laser Digital Bitcoin Adoption Fund, with the objective of empowering traders to access Bitcoin securely and effectively.

BTC analysts are now working to decipher how the token’s prices will be driven in the future. Several Bitcoin price projections have put forward a brighter picture that showcases the token bouncing at as high as $100k in the years to come. The initial estimate was that the digital token would achieve this feat by the end of 2023. That instantly became a near-impossible task when BTC refused to give up its position under the $30k mark.

Now, there is a chance that BTC could end up at $27,440 or $25,200. Needless to say, this is only a projection, with prices having the potential to play hardball amid volatile conditions. Nevertheless, there will be tremendous opportunities for traders looking to buy the dip and sell it later for a higher price.

The other two major cryptocurrencies can be seen struggling as well. These are ETH and BNB, currently at $1,617.81 and $213.54, respectively. ETH is down by 0.27%, and BNB has slipped by 0.43% in the last 24 hours.

As for BTC, token holders are looking for the point to cross the $30k mark at the earliest, considering Crypto Winter’s long run away from the bullish trend.

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

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