- Bitcoin registered a walk in Longs positions above $ 90k
- Cryptocurrency could see a long squeeze while demand is increasing while the price momentum weakens on the charts
The market saw Bitcoin in the past week [BTC] Rally past $ 95k. This price pump resulted in a high appetite among investors, because they now expect further profit. Needless to say, the demand for long positions has also been shot up.
In fact, Bitcoin’s financing speed became positive again, with the Longs being dominant above 90k, in fact positive again, with the lungs.
Source: Alfractaal
This means that most investors expect the uptrend to continue and may hit the $ 100k marking. However, the increase in demand for long -term can become problematic as the price momentum weakens.
We can see this increase as the open interest rate of Bitcoin increased by $ 1 billion in 24 hours, rising from $ 31 billion to $ 32 billion. When open interest rates, this often means that more traders enter the market to open new positions. In this case they are long positions.
While the opening of the interest and financing rates has risen lately, the price of the crypto has remained on the reach of $ 94k in the last 2 days.
Source: Cryptuquant
In addition, Bitcoin’s spot has established cumulative volume delta in a negative area. At the time of writing, the spot CVD was at -1094.
When the CVD drops as the open interest rates, it means that buyers in the market become weak. While for a long time continues to increase. A decrease in purchasing pressure leads to a low demand, so that speculative investors can leave the market to maximize profit.
Source: Checkonchain
When the market is determined in this way, there is a risk of a long squeeze. According to AlfractalBitcoin can position the current market conditions to experience a long squeeze in the coming hours. According to their analysis, there can be a moment of market anxiety. Especially since many traders start to feel optimistic and project higher prices, while bears become anxious for fear of a further price increase.
When the predicted long squeeze comes forward, we could see a sharp drop on Bitcoin’s price chart. It can also risk a drop below $ 90k where long durments dominate.
Is a long squeeze inevitable for BTC?
In particular, the rising financing percentage in the midst of weakening price purchase momentum is a reason for alarm. If the trend continues as it has, we can see a long pinch with the price that dropped below $ 90k.
However, there may be some signs of hope for the market, especially of holders in the short term. Consider this-the short-term holder, the profit/loss ratio achieved up to +1.2%, which marked an important psychological shift. Historically, turning this ratio positively indicated the start of a long -term recovery in the charts.
Source: Cryptuquant
It is important that they put positivity on the market with STH holders in profit position and help stabilize the price.
When this cohort is in profit, the sales pressure of them drops and helps to reduce and prevent a potential downward spiral in expansion. That is why BTC, to prevent the market, must win a long squeeze, win back $ 95k and try $ 96k.