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Analyst: Bitcoin Approaching New High but Traders Show Bearish Sentiment, Potential Short Squeeze Ahead
Summary: According to Coindesk analyst Oliver Knight, despite Bitcoin trading price surpassing $110,000 and nearing an all-time high, traders are showing bearish sentiment with a significant drop in the long/short ratio from 1.223 (bullish) to 0.858 (bearish). Data shows that open short contracts have increased from $32 billion to $35 billion, indicating an influx of funds ...
According to Coindesk analyst Oliver Knight, despite Bitcoin trading price surpassing $110,000 and nearing an all-time high, traders are showing bearish sentiment with a significant drop in the long/short ratio from 1.223 (bullish) to 0.858 (bearish).
Data shows that open short contracts have increased from $32 billion to $35 billion, indicating an influx of funds into bearish positions, reflecting a lack of confidence in Bitcoin's continuous rise. Currently, Bitcoin is still fluctuating in the $100,000 to $110,000 range. Technical indicators like RSI show bearish divergence, while traders are using short-term strategies for arbitrage within this range.
The increase in short positions also presents a potential bullish scenario: a short squeeze. If Bitcoin breaks the all-time high, triggering forced liquidation points and stop-loss levels for shorts, it could quickly increase buying pressure, further driving the price up.
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Link: Analyst: Bitcoin Approaching New High but Traders Show Bearish Sentiment, Potential Short Squeeze Ahead [Copy]
