Bitcoin (BTC) toll posted a 25% gain afterwards this week's news of Tesla's $one.v billion BTC investment came out. Prior to this reveal, BTC was lagging behind Ether's (ETH) operation past 7.v% only the numerous bullish events of the past few days helped BTC to striking a new all-time high at $48,900.

Previous to Tesla'southward announcement, BTC price was trading in the $thirty,000 to $41,500 range for nigh 3 weeks and once the price broke out 1 would look pro traders and arbitrage desks to follow the bullish tendency.

Rather than flipping long, many of the top traders opened short positions as BTC commenced its 25% motility. This seems risky given that this week Bitcoin received praises from JPMorgan's co-president and regulators approve a BTC ETF approval in Canada.

Bitcoin and Ether USD prices at Bitstamp. Source: NYDIG Digital Assets Data

Historical data shows that Bitcoin price actions tend to merchandise in tandem with Ether, which has been strongly bullish for months. Adding to this bullish scenario, Bitcoin's Lightning Network appear a tape node count and the full value locked (TVL) surpassed $42 million.

Mastercard also appear that it would support cryptocurrency payments on its network past the finish of 2021.

These bullish signals contrast with the long-to-brusque net positioning metrics provided by major cryptocurrency exchanges.

This indicator is calculated past analyzing the client's consolidated position on the spot, perpetual and futures contracts and information technology provides a clearer view of whether professional traders are leaning bullish or bearish.

It is important to note that there are occasional discrepancies in the methodologies betwixt various exchanges, so viewers should monitor changes instead of accented figures.

Exchange'south top traders BTC long-to-curt ratio. Source: Bybt.com

Since February. viii, when the Tesla annunciation took place, exchanges' height traders take kept their cyberspace positions relatively unchanged.

Before Bitcoin'due south 25% rally, Binance had a 1.33 ratio favoring longs, which is in line with the previous calendar week. This indicator peaked at 1.53 on February. x, but has since and so returned to one.31.

On the other hand, Huobi meridian traders had a 0.74 indicator ahead of February. 8, which remained flat for three days. On Feb. 11 as BTC rallied from $44,000 to $48,000, these traders began increasing cyberspace longs, reaching the current 0.80. Although this level is however favoring net shorts by 20%, it remains higher up the 0.75 level from Jan. 29.

Lastly, OKEx top traders held a 14% net long position before the Tesla news came out. Although they've reverted to a 47% net short position on that same day, over the terminal 4 days the indicator has come up dorsum to ane.03. Currently, OKEx traders remain well beneath the 52% net long position from two weeks ago.

Staking could be capturing top traders

Top traders could have likewise moved their BTC off-exchange in search of better yield opportunities. Therefore, assuming that they've entered short positions solely by monitoring centralized exchanges' could be a brash determination to attain.

As things currently stand up, the long-to-short indicator does not show extreme net long positions from arbitrage desks, market makers, and whales. A counterbalanced derivatives market suggests that there'southward ample room for buying activity if BTC continues to rally to $50,000 and to a higher place.

The views and opinions expressed here are solely those of the autho r and do not necessarily reverberate the views of Cointelegraph. Every investment and trading move involves take a chance. You should comport your own inquiry when making a decision.