Three out of four Bitcoin traders hold bullish sentiment towards BTC
Bitcoin (
BTC
) traders on the
cryptocurrency exchange
Binance
have shown a
bullish
bias, with 75% of the 24-hour open positions being
long
. This hints at a positive sentiment from retail traders, but the volume remains neutral with a balanced long/short ratio.
Finbold retrieved
data
from
CoinGlass
on June 30, which shows the imbalance between unique account traders going long on Bitcoin. In particular, three in every four accounts opening
derivatives
positions have gone long, betting the price will increase from here.
This ratio refers to the last 24 hours for BTC/USDT perpetual contracts on Binance. Notably, this is, by a large margin, the most traded pair in the
cryptocurrency market
. Binance has over 50% of Bitcoin’s global volume, while the
USDT
makes over $1 trillion daily.
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Binance BTCUSDT Lon/Short (Accounts)
Follow the money: Overall volume remains neutral
On the other hand, the overall trading volume for Bitcoin derivatives in all markets remains neutral and slightly bullish. 51.54% of the trading volume deployed to open positions in the last 24 hours is long BTC.
BTC Long/Short Ratio Chart. Source:
CoinGlass
The divergence between the number of accounts and the USD volume suggests that longs are mostly held by retail traders. Usually, this class of investors acts through emotion, making decisions motivated by
FOMO
or
FUD
and becoming a target of whales that can move the market up and down, liquidating retail traders for profit.
Bitcoin’s bearish and bullish contexts
As reported by Finbold, Bitcoin faces a challenging time amid
sell-offs by the governments of Germany
and the United States. Moreover,
Mt. Gox has announced the repayment of over $8 billion in BTC
, which has been awaited for over a decade.
In this context,
Bitcoin miners started capitulating with record-low reserves and produced hashrate
. Meanwhile, old-time supporters like Peter Thiel have
lost conviction in the cryptocurrency’s fundamental value proposition
.
Nevertheless, the BTC price remains within a four-month range, testing support at $60,000, currently trading at $61,500.
Crypto traders
and investors still foresee a bright future for Bitcoin, with projections ranging from $80,000 to $500,000 despite the fundamental challenges.
BTC/USD daily price chart. Source:
TradingView
/ Finbold
BlackRock (NYSE:
BLK
) and other
Bitcoin spot ETF
issuers continue to push the maiden
cryptocurrency
among traditional
finance
investors, which is expected to generate mid-term demand.
Wall Street has recently sold considerable amounts
, but the
ETFs
still display monthly positive capital flows, indicating a bullish bias.
Nevertheless, everything can happen when trading volatile assets such as
cryptocurrencies
. Speculators must be cautious while getting too much exposure through leverage and understand the inherent risks within these operations.
Disclaimer:
The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk