Cryptographic merchants exhibit bearish behavior despite Bitcoin
Operation above $ 110,000 and possibly point to a new superior record above $ 112,000.
Coinalyze’s data show that during Bitcoin’s move this week from $ 106,000 to $ 110,000, the long/short ratio fell from 1,223 in favor of Longs to 0.858 in favor of the shorts.
It is worth noting that the long/short relationship in this case is analyzing the percentage of accounts that are long or short, which is usually an indicator of retail feeling. The long/short relationship has been negative on numerous occasions during the recent movement above $ 100,000 despite keeping positive throughout the previous bullish market in 2021.
The open interest also increased from $ 32 billion to $ 35 billion during this period, indicating that a significant capital is being pumping to Bitcoin’s short circuit. However, financing rates remained positive throughout this increase, indicating that merchants are also entering long positions.
Bitcoin has been caught in a relatively narrow range since the beginning of May, quoting between $ 100,000 and $ 110,000 with three tests of each level of support and resistance.
Technical indicators such as the relative force index (RSI) Continue painting an bearish image with several units of bearish divergence, with the weakening of RSI in each test of $ 110,000.
The recent influx of short positions could well be merchants of lower terms that capitalize in the range, shortening the resistance before reversing their trade in each $ 100,000 test.
This sounded true on June 22 when the long/short relationship shot up to 1.68 when Bitcoin fell momentarily for $ 100,000 before bouncing.
There is a potential bull box with the increase in short positions: a short presentation. This would happen if Bitcoin begins to trigger liquidation points and stop losses above a record, which would cause an impulse in the purchase pressure and the continuation of the rise.
Update July 3, 16:21 UTC: Add context on a long/short relationship and a sentence on the financing rate that remains positive.
