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Pro traders avoid Bitcoin longs while cautiously watching DXY strengthen

Large corporations are buying Bitcoin at an accelerating pace, but pro traders are reluctant to open BTC longs while the dollar index strengthens.
Bitcoin (BTC) price might have re-established $50,000 as a support, but the optimism of professional traders is nowhere near the levels seen before the 26% drop to $43,000 on Feb. 28. The current scenario is far from bearish, but derivatives indicators do not reflect the substantial purchases from institutional clients, including Microstrategy, Meitu, and most recently, Aker ASA, a Norweigian oil conglomerate.Bitcoin price, USD. Source: TradingViewThe longer Bitcoin stays above a certain threshold, the more confident investors get. For example, the last daily close below $45,000 was 28 days ago. Therefore it might take a couple of weeks until a more robust support level is created. For this reason, pro traders might not be comfortable with adding long positions as the U.S. Treasury yields and the dollar are on the rise.Regardless of the reasons behind BTC’s current comfort level near $50,000, the price correction that followed the $58,300 all-time high caused massive liquidations, which partially explains the recent lack of bullishness from pro traders.BTC futures contracts aggregate liquidations. Source: Bybt.comThis price drop caused $3.6 billion long future contracts to liquidate from Feb. 21 to Feb. 25, and abrupt moves like these hold a considerable impact on arbitrage trades as whales and market makers are forced to add collateral (margin). The futures premium held very healthy levelsBasis is also frequently referred to as the futures premium, and it measures the premium of longer-term futures …
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