Crypto expert Ali noticed an odd occurrence as Bitcoin increased to around $29,000. After yesterday’s profit-taking, Bitcoin unexpectedly rebounded today’s trade to reach a high of $28,999.
Approximately 51% of all accounts on the Binance cryptocurrency exchange with an open BTC futures position are going short as Bitcoin approaches $29,000, according to a tweet from Ali.
https://x.com/ali_charts/status/1714527645038219387?s=20
Following a false claim that a spot Bitcoin ETF had been authorised on October 16, the price of bitcoin briefly increased to $30,000. Despite the profit-taking that followed the news’s discovery as a hoax, some analysts think the ferocious bullish price action will hold bearish at bay for some time.
The majority of Bitcoin traders, or roughly 51% of Binance, the largest cryptocurrency exchange by volume, are betting against the price of BTC by going short, which is shocking.
In a previous piece, Ali noted that long-term Bitcoin investors are displaying “fear” due to worries of a sharp decline in the value of BTC. This might be the cause of traders’ tendencies to be negative.
However, there is a bright side to this. The majority of recent Bitcoin rallies have been driven by a short squeeze, which is a rally started by the unwinding of short holdings.
At the time of writing, BTC had increased by 0.72% to $28,598 on the previous day. According to Glassnode cofounder “Negentropic,” the $28,000 milestone is important.
The crypto market is mostly dependent on Bitcoin’s capacity to surpass and maintain a value over $28,000.
Second, because price thresholds represent investor mood and market dynamics rather than being just numbers, they are important in the grand scheme of things.
In the meantime, Bitcoin’s control over the whole cryptocurrency market, or BTC market share, is rising. BTC dominance is presently 51.1%, according to statistics from CoinMarketCap, slowly moving towards historical highs.
