- Technical indicators pointed to capital inflows for Bitcoin.
- However, on Binance, most accounts were failing at the time of writing.
Bitcoin [BTC] flexed its muscles after crossing the $30,000 mark as the weekend rally injected some more volatility into the broader crypto market. The king coin was exchanging hands for $30,700 at the time of writing, the highest in the past three months, according to CoinMarketCap.
How much are 1,10,100 BTCs worth today?
Great expectations from Bitcoin
Bitcoin’s spiral reignited optimism in the market, with many investors betting on continued price appreciation in the near term.
According to Coinglass, over the past 24 hours there was an increase in the number of traders opening long positions versus those going short. This was a dramatic reversal as bearish leveraged traders were dominant for much of the weekend.
Source: Coinglass
Binance tells a different story
Interestingly, a different story unfolded on the world’s largest crypto derivatives exchange, Binance [BNB]. According to Hyblock Capital, an overwhelming percentage of accounts on the platform, almost 60%, were still positioned for price losses.
Not only that, but the exchange’s top traders also followed a similar strategy. About 42% of the highest margin accounts hoped for Bitcoin’s value to rise further.
Source: Hyblock Capital
However, in the broader market, indicators pointed to long dominance. While the Open Interest (OI) rose over the past 24 hours, the buying volume in the market exceeded the selling volume. This implied that long entered the market via aggressive orders.
Source: Hyblock Capital
The technical indicators were bullish
The Relative Strength Index (RSI) reflected the market’s bullish sentiment. The momentum indicator was flying above the overbought threshold at the time of writing, implying that BTC was trading slightly above its true value.
However, keep in mind that technical analysts often view such events as a harbinger of a minor or major correction.
Furthermore, On Balance Volume (OBV) continued to move on an upward trajectory, indicating capital inflows into the market.
Source: Trading View/BTC-USD
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Meanwhile, despite all the fuss surrounding it, sentiment around Bitcoin was neutral, as evidenced by the latest measurements of the Fear and Greed Index.
However, with the highly volatile crypto market, you can never be too confident, and it wouldn’t be surprising if the mood shifts radically towards ‘greed’ or ‘fear’ in the near future.
Bitcoin Fear and Greed Index is 53 – Neutral
Current price: $30,527 pic.twitter.com/rzjuI1Q3Q9— Bitcoin Fear and Greed Index (@BitcoinFear) October 23, 2023