Bitcoin Bottom Could Be Below $15.5,000, But Data Shows Some Traders Are Turning Bullish

Bitcoin whales and market makers continue to add to their leveraged long positions, even though it is not clear if $15,500 was the final floor.

Bitcoin (BTC) bears have been under control since Nov. 11, bringing the price of BTC back below $17,000 every 12-hour candle. On November 28, a drop to $16,000 shattered buyers' hopes that the 7% gains between November 21 and 24 were enough to mark a cycle low at $15,500.

The most likely culprit was an unexpected transfer of 127,000 BTC from a Binance cold wallet on November 28. The huge Bitcoin transaction immediately sparked fear, uncertainty and doubt, but Binance CEO Changpeng Zhao later announced that it was part of an audit process.

Regulatory pressure has also limited BTC's rise after reports on Nov. 25 showed cryptocurrency lending firm Genesis Global Capital and other crypto firms were under investigation by securities regulators in the United States. Joseph Borg, Director of the Alabama Securities Commission, confirmed that his state and several other states are investigating Genesis' alleged ties to violating securities laws.

On November 16, Genesis announced that it had temporarily suspended withdrawals, citing "unprecedented market turbulence". Genesis has also engaged restructuring advisers to explore all possible options, including but not limited to possible bankruptcy, as Cointelegraph reported on Nov. 23.

Let's look at derivatives metrics to better understand how professional traders are p...