Crypto -Dealers exhibit Bearish behavior in spite of Bitcoin
Trade over $ 110,000 and may be aiming for a new record high over $ 112,000.
Data from Coinalyze shows that under Bitcoin’s Move this week from $ 106,000 to $ 110,000, the long/short relationship dropped from 1,223 in favor of longs to 0.858 in favor of shorts.
It is worth noting that the long/short relationship in this case is to analyze the percentage of accounts that are long or short, which is typically an indicator of retailing. The long/short relationship has been negative several times during the recent step over $ 100,000 despite remaining positive through the previous bull market in 2021.
Open interest also rose from $ 32 billion to $ 35 billion during this period, indicating that significant capital is pumped to map Bitcoin. However, the financing rates remained positive throughout this increase, which indicates that dealers are also included in long positions.
Bitcoin is trapped in a relatively tight interval since the beginning of May, trading between $ 100,000 and $ 110,000 with three tests of each level of support and resistance.
Technical indicators such as relative Strength Index (Rsi) Continue painting a bearish image with multiple drives with bearish divergence, with RSI weakening on each test of $ 110,000.
The recent influx of short positions could well be lower time -dealers who benefit from the range, where there is a short circuit of the resistance before turning their trade to each test of $ 100,000.
This was true on June 22 when the long/short relationship shot up to 1.68 when Bitcoin immediately fell through $ 100,000 before jumping.
There is a potential bull bag with the increase in short positions: a short clamp. This would occur if Bitcoin begins to trigger liquidation points and stop losses over a record high, which would cause an impulse in purchase pressure and continuation on the upside.
Update July 3, 16:21 UTC: Adds context on long/short relationship and a judgment on the financing rate that remains positive.
