- BTC is about to hit a new ATH.
- Despite this trend, more traders have taken short positions.
Despite Bitcoin [BTC] trading at $104,500 and with a strong uptrend, the long/short ratio on Binance shows that almost 60% of traders have short positions. With BTC trading above the major moving averages, bulls remain in control, ready to push prices higher if the $105,000 resistance is broken.
The long/short ratio indicates a growing bearish bias
The latest data analysis on the long/short ratio on Mint glass highlights that almost 60% of traders on Binance are shorting Bitcoin. This significant tilt toward bearish sentiment reflects the cautious sentiment among market participants even as BTC continues its uptrend.
Source: Coinglass
The long/short ratio charts show consistent dominance of short positions over the last two trading sessions. The trend indicates that many traders are hedging against a possible correction or overbought situation.
Interestingly, this bearish sentiment comes at a time when Bitcoin has maintained a strong price trajectory and is trading around $104,500.
Such a divergence between sentiment and price movement could indicate underlying market strength, with bears potentially experiencing liquidation in the event of further upward momentum.
Liquidation Trends: Shorts are increasingly at risk
Liquidation data from the past two trading sessions shows that short positions have suffered heavier liquidations than long positions. The most recent trading session saw a notable spike in short liquidations, with 68.78 million for shorts and $13 million for longs.
This rise indicates that bearish traders anticipating a pullback have been caught off guard by Bitcoin’s resilience above key psychological levels.
Source: Coinglass
When this liquidation trend is combined with the high percentage of short positions, it becomes clear that BTC’s upward momentum has put significant pressure on leveraged bears.
Traders will need to keep a close eye on liquidation levels as further price increases could lead to additional short squeezes, potentially pushing BTC higher.
Bitcoin is in control amid RSI and moving average signals
Bitcoin’s price action remains bullish on the daily time frame, supported by technical indicators pointing to strong upside momentum. The Relative Strength Index (RSI) currently stands at 67.65, indicating that BTC is approaching overbought territory but still has room for further upside potential.
Historically, RSI levels around 70 have been associated with short-term corrections; However, Bitcoin’s ability to maintain current levels could alleviate immediate bearish concerns.
Source: TradingView
Moreover, the price of BTC is trading well above the 50 and 200 day moving averages, further reinforcing the bullish outlook. The Golden Cross continues to act as a strong support for the ongoing rally.
A close above $105,000 could open the door to testing $110,000, while immediate support is around $100,000.
Can Bears Resist BTC’s Momentum?
The current bearish positioning among traders does not seem to be in line with Bitcoin’s strong upward momentum. With short liquidations piling up and BTC holding key support levels, the market could be primed for further gains if short traders capitulate.
Read Bitcoin (BTC) price prediction 2024-25
The interplay between the long/short ratio, liquidations, and price action suggests that Bitcoin bulls remain firmly in control for now.
As traders assess the risks, the market’s ability to absorb the selling pressure and maintain its upward trajectory will be critical. Investors should keep an eye on Bitcoin’s resistance at $105,000 and support at $100,000 for signals of the next change in direction.