The recent price action of Bitcoin [BTC] has been a hot topic in the crypto world this week, with new data from Binance and IntoTheBlock sparking speculation about the next move for the leading cryptocurrency.
With a large number of traders taking short positions and a surge in the number of active addresses, there are key developments worth noting.
Majority of Bitcoin traders opt for short positions
Recent data from Coinglass highlights that 58.23% of all accounts on Binance with open positions in Bitcoin are currently in favor of short positions. This indicates a prevailing sentiment among traders that Bitcoin’s price will decline.
However, such heavy short positions can also lead to sudden price spikes if Bitcoin moves in the opposite direction, triggering these traders to close their positions.
Source: X
Increased trading activity around Bitcoin
According to data from IntoTheBlock, there has been a 19% surge in the number of active addresses for Bitcoin, reaching 764.38K in the past 24 hours. This uptick in activity often signals a growing interest and engagement in the market, potentially hinting at a forthcoming price movement.
A higher number of active addresses implies a rising demand, lending support to the possibility of an upward price movement.
Source: IntoTheBlock
Bullish liquidity conditions point towards a potential rebound
Despite the prevalence of short positions, liquidity metrics continue to show a generally bullish sentiment. A crucial price level to monitor is $68,600, where liquidation worth $49.02 million in BTC could occur.
This indicates that many traders are still anticipating a bullish Bitcoin rally, in line with recent market activity.
Source: Coinglass
Possible breakout at $67,400 may trigger a rally
Bitcoin faces immediate resistance at $67,400. If the price successfully breaches this key level, the next target could be $86,600, as suggested by a reputable crypto analyst.
Source: X
Despite the predominant short positions among traders, the surge in active addresses and positive liquidity outlook indicate a potential upside momentum for Bitcoin.
Bitcoin appears poised to surpass the $67,400 resistance level, paving the way for a possible rally towards $86,600.