Since holding the $60,000 support a week ago, Bitcoin has shown some strength, with bullish pressure increasing. The upward momentum pushed BTC to $67,000 before a slight pullback occurred.
At the time of writing, BTC was trading at $65,695, down 1.14% from the daily charts. Prior to this skid, the crypto had been on a strong upward trajectory, rising 7% on the weekly charts.
Despite the price drop, traders on the daily charts have remained bullish and strategically positioned for further gains.
Bitcoin trader opens a $68 million long
With Bitcoin [BTC] Despite their relative strength, traders in the derivatives market have turned bullish. As a result, the market is seeing a significant increase in demand for long positions, especially in whales.
Onchain lens reported one such trader. A trader opened a 20x long position on 1036 BTC worth $68.1 million.
So far, the trader is down $705,000, while BTC returned to $65,000 after spending $12,000 in funding. Previously, when the market fell, the whale had realized more than $4 million in profits by shorting the market.
When wealthy traders roll over their long positions, it signals increasing confidence in the market. That traders currently expect the uptrend to continue.
Derivatives too bullish
Interestingly, the whale mentioned above was not an isolated case. Market participants have even shown greater interest in leveraged positions.
According to data from CoinGlass, traders have deployed significant capital into the derivatives market. $9.17 billion flowed into Futures over the past 24 hours, adding to the $25.7 billion recorded over the past three days.
Capital flowing into the market suggests traders were using more money to open new positions. In that respect, it appears that these positions were mainly long positions.
CoinGlass data showed the Long Short Ratio rising to 1.007. The ratio remained above 1 at Binance and OKX, with the top traders’ ratio reaching 1.5.
A ratio above 1 suggested that most traders were bullish and opened longs, expecting the uptrend to continue.
What’s next for BTC?
Historically, high demand for short-term leveraged positions has caused price pumps. At the same time, the risk of liquidations has historically led to sharp price declines.
For now, Bitcoin is showing signs of recovery, although momentum remains weak. Looking at the Relative Strength Index (RSI), although it recovered from oversold, the indicator is still below 50 at 42.
At current levels, it appears that buyers have stepped in, but have not yet fully recaptured the market. This implies that bulls have an upper edge, but bears remain.
To fully recapture the market, bulls need a clear close above the long MA at $66,066 and $70,000. Failure to do so will cause BTC to fall below the short MA of $65k, most likely to $63,500.
- A Bitcoin trader opened a 20x long position on 1036 BTC worth $68.1 million amid rising leverage.
- Bitcoin [BTC] shows signs of recovery, but upward momentum remains relatively weak.