Bitcoin rally hopes diminish as pro traders flip bearish, retail interest at 12-month lows
Bitcoin (BTC) has been trapped in a symmetrical triangle for 56 days and the trend change could last until early May, according to price technicals.
Currently, the support level stands at $38,000, while the triangle resistance for daily close stands at $43,600.
The week started with a positive achievement for the Bitcoin network as the Lightning Network capacity reached a record-high 3,500 BTC. This solution allows extremely cheap and instant transactions on a secondary layer, known as off-chain processing.
After cryptocurrency mining activities were banned in China in 2021, publicly-listed companies in the United States and Canada attracted most of this processing power.
As a result, Bitcoin's hash has recovered dramatically since the summer. It's currently at all-time highs at over 200 EH/s. According to the Cambridge Bitcoin electricity consumption index, 45% of the global hash rate derives from North America.
Furthermore, Whit Gibbs, the founder and CEO of Compass Mining, stated that "public mining companies definitely have an advantage when it comes to holding Bitcoin because they have access to the capital markets." In addition, there is less selling pressure as miners' reserves have been steadily increasing.
Meanwhile, searches for "Bitcoin" on Google are nearing their lowest levels in 12 months. This indicator could partially explain why Bitcoin is 41% below its $69,000 all-time high, i.e., public interest is low. Still, one needs to analyze how professional traders are positioning themselves, and there's no better gauge than derivatives markets.
Related: Crypto miner Hut 8 posts record revenue as BTC holdings surge 100%
The top traders' long-to-short net ratio excludes externalities that might have impacted specific
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