Key Points
- 58.23% of Binance accounts with open Bitcoin positions are going short, indicating a strong sentiment for a price drop.
- Despite the shorts, active addresses and liquidity indicators suggest a potential Bitcoin rally.
Short positions on Bitcoin (BTC) are currently dominating on Binance, with 58.23% of accounts expecting the cryptocurrency’s price to drop.
However, contrary to this bearish sentiment, a sudden price jump can occur if Bitcoin moves against the crowd, forcing traders to cover their positions.
Bitcoin Trading Activity Increases
Data from IntoTheBlock shows a 19% surge in Bitcoin’s active addresses to 764.38K in the last 24 hours.
This increase in market activity often indicates a rising interest and participation, suggesting a potential price move.
The rise in active addresses could hint at a growing demand, adding more weight to the potential for an upward rally.
Potential for an Upswing
Despite the dominance of short positions, liquidity data still shows a bias towards a more bullish sentiment.
One key price level to watch is the $68,600 level, where $49.02 million in BTC could get liquidated, indicating that many market participants still expect an upward Bitcoin rally.
A renowned crypto analyst suggests that if Bitcoin breaks through the immediate resistance level at $67,400, it could potentially surge to a target level of $86,600.
Despite the majority of traders holding short positions, the rise in active addresses and liquidity indicators suggest a different narrative.
Bitcoin is teetering on the edge of breaking above the $67,400 price level, which could trigger a surge in price action towards $86,600.
