Watching traders’ decisions on cryptocurrencies such as bitcoin, especially on prominent exchanges like Binance, is often the key to understanding the underlying currents in the market. Two critical events today, highlighted by renowned crypto analyst Ali Martinez, paint a curious picture of btc‘s current situation.
Most Binance Traders Short btc
Ali Martínez, a respected figure in the world of crypto analysis, revealed some interesting things. data about bitcoin today. According to Martinez’s post on X (formerly known as Twitter), most Binance traders with open bitcoin futures appear to be expecting a slowdown.
Specifically, around 51% of these traders are shorting btc. For clarity, short selling is essentially betting that the price of an asset will decline. This data indicates that, at least on Binance, traders have a prevailing sentiment that the price of bitcoin could fall.
As bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#bitcoin is approaching $29,000, approximately 51% of all accounts in #Binance with an open $btc Futures positions are falling short! pic.twitter.com/o7SUMfHEyX
—Ali (@ali_charts) October 18, 2023
However, it is important to note that short positions do not always necessarily translate into a lack of confidence in the asset. Traders could be hedging their bets, capitalizing on short-term fluctuations, or employing a variety of trading strategies that best suit their financial goals and risk tolerance.
Notable bitcoin Price Achievement
The same day, in another tweet, Martínez shared that bitcoin has achieved a notable milestone. The leading cryptocurrency surpassed the $27,900 mark, which Martínez identifies as the “cost basis for the short-term holder.”
This means that those who have held btc for a shorter period and previously made minimal profits could be making profits.
If bitcoin maintains its position above this crucial price, it may suggest a change in market sentiment, veering more towards the bullish side, according to the analyst.
bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#bitcoin has crossed the cost base for the short-term fork around $27,900, which is a crucial psychological benchmark.
Yeah $btc stays above this level, those short-term holders who were previously underwater can turn profits again. This could signal a shift towards bullish sentiment in the market! pic.twitter.com/WilZ6CB67P
—Ali (@ali_charts) October 18, 2023
This development stands in stark contrast to the aforementioned short-selling trend on Binance, emphasizing the multifaceted and complex dynamics at play in the crypto market. Meanwhile, the global crypto market has fallen 0.4% in the last 24 hours following btc‘s drop of almost 1%.
bitcoin is trading at $28,348 after retreating from its recent peak earlier this week to over $30,000 due to a false report of the US Securities and Exchange Commission (SEC) approval of the bitcoin ETF. cash.
Featured image from Unsplash, chart from TradingView