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Crypto analyst Ali spotted an unusual happening as Bitcoin rose near $29,000. In a surprising rebound after yesterday's profit-taking, Bitcoin rose to highs of $28,999 in today's trading.
Ali reported in a tweet that as Bitcoin nears $29,000, roughly 51% of all accounts on the Binance crypto exchange with an open BTC futures position are going short.
Bitcoin momentarily surged to $30,000 on Oct. 16 after a false report about a spot Bitcoin ETF being approved. Despite the profit-taking that occurred shortly after the news was confirmed to be fake, some observers believe that the frenzied bullish price action will keep bears distant for some time.
However surprising is the fact that most Bitcoin traders — nearly 51% of the biggest crypto exchange by volume, Binance — are placing bearish bets on BTC prices by going short.
In an earlier post, Ali observed that Bitcoin long-term holders are exhibiting "fear" amid concerns of a large BTC price fall. This might be a reason for the bearish inclination of traders.
This, however, has a silver lining. Most Bitcoin rallies in recent months were fueled by a short squeeze, a rally triggered by the unwinding of short positions.
Tomiwabold OlajideBTC was up 0.72% in the last 24 hours to $28,598 at the time of writing. The $28,000 milestone, according to Glassnode cofounder "Negentropic," is significant.
First and foremost, the crypto market is dependent on Bitcoin's ability to breach and constantly hold a value above $28,000.
Second, this price point is crucial in the greater scheme of things, as price thresholds are not just numbers; they signify investor sentiment and market dynamics.
Meanwhile, Bitcoin's market share of the overall cryptocurrency market, or BTC dominance, is increasing. According to CoinMarketCap data, BTC dominance is currently at 51.1%, slowly approaching previous highs.
Yuri Molchan
Vladislav Sopov
Dan Burgin
Alex Dovbnya