Bitcoin BTC galloped to a new record high over $ 110,000 on Thursday and liquidated about $ 500 million worth of derivative positions in its wake, but some dealers don’t buy into the bullish atmosphere.

Trade volume jumped by 74% in the last 24 hours when dealers tried to place themselves, but most of these dealers choose to go short – or bet Bitcoin moves down.

Coinalyze data shows that the long/short relationship is at the lowest point since September 2022, which was in the middle of the crypto winter.

This trend began on April 21, when dealers aggressively short -ended the outbreak over $ 85,000, apparently under the impression that Bitcoin had already formed its cycle high and that any subsequent feature would form a double top.

However, despite a deficiency of retail participation, Bitcoin continued to grind higher and extract levels of resistance to $ 97,000 and $ 105,000 on its way.

The move can be attributed to a number of factors; A recovery in US shares such as Customs relates to cooled, an increase in institutional activity on exchanges, such as CME, and decisive a wealth of short positions to push and force prices higher.

While these short positions may be considered Bearish in terms of market structure, they actually fan the flame to the head as it gives Bullish trading areas to target and lead stop-loss hunting that we saw earlier this week.

It is not necessarily a bad strategy to map an asset’s record height; A trader will often choose to enter a short position at a resistance level, whether technical or psychological, and layers stop losses over where the thesis of a short trade would be invalid.

In this case, if a trader short -circuited $ 105,000 on each of BTC’s three tests in this area could have closed their position in profits on three apartments for $ 102,000, which means that even though they were stopped out of trade for $ 109,000, it would be a profitable week.

Alongside the continued increase in short positions, we have seen open interest jump disproportionate to BTC. Over the last 24 hours, BTC has risen 4.8%, while open interest rates rise by 17% despite hundreds of millions being liquidated.

This indicates that the record high break is driven by leverage and perhaps less sustainable, that the original drive over $ 100,000 in December and January.

It is back to see if interest in short positions continues to rise if BTC rolls on with its significant feature over $ 111,000, but there is definitely a minefield with short positions to squeeze if it needs some ammunition.

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