Bitcoin BTC Galopó with a new record of more than $ 110,000 on Thursday, liquidating around $ 500 million in positions of derivatives in their path, but some merchants are not buying the upward feeling.
The negotiation volume increased by 74% in the last 24 hours, since merchants tried to position themselves, however, most of these merchants are choosing to fall short, or bet on Bitcoin moving down.
Coinalyze data shows that the long/short relationship is at its lowest point since September 2022, which was the medium of cryptographic winter.
This trend began on April 21 when merchants aggressively shorten the breakdown above $ 85,000, apparently under the impression that Bitcoin had already formed its high cycle and that any subsequent movement would form a double top.
However, despite the lack of retail participation, Bitcoin continued to increase more, obtaining resistance levels to $ 97,000 and $ 105,000 on his way.
The movement can be attributed to a series of factors; A recovery in US actions. As the rates’ concerns cooled, an increase in institutional activity in exchanges, such as CME, and crucially a large number of short positions to squeeze and force the highest prices.
While these short positions can be considered bassists in terms of market structure, they are actually advancing upward flame, since it offers areas of bullish merchants to attack and perform a search for deterioration as we saw earlier this week.
To shorten the record of an asset is not necessarily a bad strategy; A merchant will often choose to enter a short position at a level of resistance, whether technical or psychological, and the layer stops losses above where the thesis of a brief trade would be invalidated.
In this case, if a merchant shortened $ 105,000 in each of the three BTCS tests of that area, he could have closed his position on profits three times at $ 102,000, which means that even if they stopped from the operation to $ 109,000, it would be a profitable week.
Together with the continuous increase in short positions, we have seen an open interest of interest disproportionately to BTC. In the last 24 hours, BTC increased 4.8%, while open interest increased by 17% despite the fact that hundreds of millions are settled.
This indicates that the record record is driven by leverage and could be less sustainable that initial impulses exceeding $ 100,000 in December and January.
It remains to be seen if the interest in short positions continues to increase if BTC continues with its transcendental movement above $ 111,000, but certainly there is a mined field of short positions to squeeze if you need some ammunition.
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