When investing, fear is not always a risk.
From a technical perspective, this often indicates an excellent accumulation opportunity, driven by the fear of missing out on outsized returns (FOMO), a dynamic clearly reflected in Bitcoin’s price. [BTC] current setup.
After six consecutive weeks of decline, BTC will close its first weekly green candle, rising over 7%. This underlines the frustration of those who missed out on a nearly $65,000 purchase as they now face the pain of lost profits.
Source: TradingView (BTC/USDT)
According to AMBCrypto, this FOMO is a major driver in the current cycle.
On the derivatives side, Bitcoin has added nearly $4 billion in new leveraged positions Open interest (OI) rises 7% to $46.8 billion. This reflects the ongoing battle between bulls and bears around the $70k level.
Remarkably, one analyst noted that BTC long positions are opening up, while the Long/short ratio at the time of writing, the price has turned negative, suggesting a short bias could be forming as bears bet on potential overhang resistance.
Be that as it may, Bitcoin’s current positioning is turning into a textbook battleground. But with the recent 7% gain fueling FOMO, could an “intensified” fear of missing out shift the bias in favor of the bulls?
Bitcoin faces fear as smart money takes a position
The short bias in Bitcoin derivatives appears to be more strategic than random.
From a technical perspective it is capital flows into BTC ETFs have turned negative again after hitting the $1 billion mark over the past three days as the broader market revived the “safe haven” narrative around Bitcoin.
Yet, data about the chain indicates that BlackRock is accumulating BTC, with a net inflow of 4,172 BTC ($303 million). All told, since Feb. 24, BlackRock has recordered a total net inflow of $1.58 billion BTC.
Source:
The timing of this accumulation is remarkable.
As the chart shows, Bitcoin has entered a historic fear zone, periods that have previously led to massive parabolic rallies, including post-FTX and the COVID crisis. Analysts are seeing it now this as an excellent 100% accumulation zone.
Combined with BlackRock’s accumulation and Michael Saylor’s tweetit is clear that smart money is positioning around $70,000. Naturally, the FOMO generated from this positioning has left shorts vulnerable, paving the way for bulls to take control and push Bitcoin past resistance.
Final summary
- BlackRock and institutional investors are strategically buying BTC around $70,000, signaling this level as an accumulation rather than a local top.
- Bitcoin’s historic fear zone, rising FOMO, and near-term vulnerabilities are setting the stage for a potential bullish breakout past resistance.