- Bullish positions have edged out the bears, rising to a three-month high.
- Shorts targeting $35,032 could be liquidated if BTC tries to move past $37,000.
Bitcoins [BTC] The rise to $36,800 represented the currency’s highest point since the start of the year. As a result, traders were betting on a decline in BTC price action, Santiment data showed.
According to Santiment, the 37% gain in Bitcoin value in 30 days has led to an increase in more long positions than short positions.
🤑 #Bitcoinnow up +37% in two months, has seen the number of traders open #bullish positions (vs. #bearish) reaches a peak in three months. Additionally, total open interest on exchanges has increased to $7.2 billion. Ideal, $BTC will continue to rise thereafter #FOMO settles down. https://t.co/YImIUMGRyl pic.twitter.com/4TyZe5YfFz
— Santiment (@santimentfeed) November 8, 2023
Opening a long position means that a trader expects the price of an asset to rise while profiting from it. With a short position the opposite is true, indicating a projected price drop.
The on-chain analysis that AMBCrypto made based on Santiment’s data showed that the open bullish positions were the highest in the past three months.
Don’t withdraw, don’t surrender
Like the bullish positions, Open Interest also rose to $7.2 billion. Open Interest is the total volume of outstanding futures contracts on the market.
When it rises, it means more liquidity is being devoted to an asset. A decline also implies that more positions are closed.
In addition to the rising price action, the rise in open interest means there is plenty of strength to support continued interest rates upward trend for BTC. The indicator showed traders targeting a maximum of $40,000.
In addition, there is the fear of missing out [FOMO] perception that currently exists in the market. FOMO is a psychological sensation where people (investors and traders) make irrational decisions due to the discomfort of missing out on potential profits.
This was reinforced by Bitcoin fear and greed index. According to Glassnode, the Bitcoin Fear and Greed Index stood at 74 at the time of writing. This measure ranges from zero to 100. It is also intended to evaluate investor sentiment.
Source: Glassnode
When the value is closer to zero, it indicates extreme anxiety. Conversely, a value closer to 100 means extreme greed. Between these numbers are the neutral values, which indicate indecision.
AMBCrypto’s assessment of the Bitcoin fear and greed index depicted high greed (colored green) in the market. Therefore, it may not be good to find a newcomer to the market as it may have overheated.
Shorts should be afraid
Regardless of greed, liquidation levels at the time of writing indicated that a notable plunge may not be imminent. These levels are typically associated with margin accounts and not spot traders.
By definition, liquidation levels are estimated price levels that could lead to the wipeout of traders’ funds.
Based on HyblockCapitals data, our evaluation showed that highly leveraged short positions targeting $35,032 could be at risk of a forced closing of the position.
Source: HyblockCapital
According to the BTC/USD 4-hour chart, Bitcoin’s rise to $40,000 seems unstoppable. This inference was reinforced by the Awesome Oscillator (AO).
At the time of writing, the AO had jumped to 971.28, indicating that the short-term moving average was larger than the longer-term moving average.
Read Bitcoins [BTC] Price prediction 2023-2024
The increasing green bars of the AO also indicate how buyers had complete control over the market. So it may be difficult for Bitcoin bears to make any significant gains. Moreover, the Fibonacci retracement level of 0.236 showed that BTC could correct towards $35,542.
However, the $0.382 Fib level showed there was strong support near $35.275. If support continues and buying pressure increases, Bitcoin’s price could potentially rise pass by $37,000 and the ride to $40,000 may be as good as done.
Source: TradingView