This is why bulls don’t buy Bitcoin’s price dip to $ 50,000

Bitcoin (BTC) has bumped into the USD 51,000 support for the past 44 days. This would typically be interpreted as a positive event, especially given that the $ 50,000 level represents a 75% advance in 2021.

However, cryptocurrency investors tend to be short-term focused and always overly optimistic. So the current story for Bitcoin is slowly turning bearish, but sentiment aside, what story does the fundamentals tell?

However, there is a possibility that the recent drop may be due to the $ 1.55 billion options expiring on April 23. As previously reported by Cointelegraph, bears have a $ 340 million benefit under $ 57,000. That could also explain why pro traders have remained neutral despite the 18% dip over the past eight days.

Bitcoin price at Coinbase, USD. Source: TradingView

On the other hand, some analysts, such as Willy Woo, have said that the Chinese mining accident caused the violent drop in Bitcoin’s hashrate. This event, plus the power outage in China’s Xinjiang region, may have reduced the Bitcoin network’s processing power by 19% and exposed its heavy reliance on coal-powered energy.

While critics bashed Bitcoin, Coin Metrics co-founder Nic Carter produced a well-researched rebuttal to some of the key claims. Carter points out that Bitcoin mining, which is relatively portable, is concentrated in areas where electricity is unused and cheap.

Additionally, while the gold industry is environmentally harmful and relies on diesel energy, Bitcoin mining can be powered entirely by clean energy. Unlike precious metals, Bitcoin miners’ portability allows for the use of previously wasted oil and gas resources.

Be that as it may, pro traders have not added any positions during the recent BTC price correction.

Pro traders don’t sell but don’t buy at any price level

Major cryptocurrency exchanges provide data on the long-to-short net positioning of their top traders. This indicator is calculated by analyzing the consolidated positions of on-site clients, margin and futures contracts. By doing this, it provides a clearer picture of whether professional traders are bullish or bearish.

It is important to note that there are occasionally methodological discrepancies between different exchanges, so one should track changes rather than absolute numbers.

The best Exchange Bitcoin long-to-short ratio traders. Source: Bybt

The chart above shows that top traders increased their exposure between April 14 and April 17, while Bitcoin price was above USD 60,000. On the other hand, these whales and arbitrage desks have remained relatively flat for the past five days.

It’s worth noting that the current 1.49 ratio, which favors longs on OKEx, remains below the April 17 1.75 level. This data indicates that top traders have lowered their positions in the past five days.

A similar trend took place at Binance, where the net long-to-short ratio of top traders peaked at 1.25 on April 17. While the current 1.18 indicator was a bit in favor of longs, it is in the lower range of the past three weeks.

Finally, top Huobi traders added long positions between April 14 and April 18, but maintained a stable ratio of 0.90.

Therefore, there is no doubt that whales and arbitrage desks are not contributing to their long positions, even as BTC is testing the USD 52,000 support with a 20% correction from the April 14 peak.

However, investors are encouraged to wait for Friday’s options to expire before jumping to any quick conclusions.

The views and opinions expressed here are solely those of the author and do not necessarily reflect Cointelegraph’s opinion. Every investment and trade move involves risks. You should do your own research when making a decision.