Key Takeaways
Is Bitcoin Ready for a Major Price Move?
Yes. With $2.7 billion in shorts and $1.1 billion in longs close to press time levels, BTC is in a tight range.
What does the earnings data say about market sentiment?
About 83.6% of Bitcoin’s supply is now profitable, but we should be careful of overheating beyond 95%.
With most holders sitting on profits and traders piling into both long and short positions, Bitcoin [BTC] may be ready for a big step. About $2.7 billion in shorts and $1.1 billion in longs are stacked close to the press time price, creating a tight zone of tension.
Whether Bitcoin breaks or breaks, a big price swing could be just around the corner.
Rising profits mean confidence
The supply of Bitcoin in profit climbed to around 83.6%, meaning most holders are now back in the green. This metric often serves as a useful way to gauge market sentiment.
Right now, this means that the market has Bitcoin’s support.
Source: Cryptoquant
When BTC’s share of profits remains between 80% and 90%, the market generally tends to continue expanding as holders resist selling.
While the press time level looked healthy, traders should watch for signs of overheating once it crosses above 95% – a zone often followed by market corrections.
Source: Glassnode
A big step forward
Bitcoin was at the time of writing captured between heavy liquidation zones – The perfect setup for a potential breakout. About $2.7 billion in short positions have piled up just above press time levels, reaching $117,000. On the contrary, $1.1 billion in long positions is below that, at $113,700.
Source:
Above these levels, pressure begins to build. About $15.35 billion in shorts stretches to $126,400, while $10 billion in longs piles up to $104,400. This setup puts BTC in a tight leverage range with high stakes.
Even a small price movement could trigger a wave of liquidations. The market remains tense and a big move could herald the next phase of volatility.