Bitcoin
Three in Four Bitcoin Traders Are Bullish on BTC
Bitcoin (BTC) traders in cryptocurrency exchange Binance showed a optimistic bias, with 75% of open positions in 24 hours being far away. This suggests positive sentiment from retail traders, but volume remains neutral with a balanced long/short ratio.
Finbold recovered data from CoinGlass on June 30, which shows the imbalance among single account traders who are buying Bitcoin. In particular, three out of four accounts that open derivatives positions are long, betting that the price will rise from here.
This index refers to the last 24 hours for BTC/USDT perpetual contracts on Binance. Notably, this is, by a large margin, the most traded pair on the market. cryptocurrency market. Binance holds more than 50% of global Bitcoin volume, while USDT grosses more than US$1 trillion daily.
Binance BTCUSDT Long/Short (Accounts)
Follow the Money: Overall Volume Remains Neutral
On the other hand, the overall Bitcoin derivatives trading volume across all markets remains neutral and slightly bullish. 51.54% of the trading volume applied to open positions in the last 24 hours is long in BTC.
The divergence between the number of accounts and USD volume suggests that longs are held primarily by retail traders. Typically, this class of investors acts on emotion, making decisions motivated by FOMO or FUD and become a target for whales that can move the market up and down, liquidating retail traders looking for profit.
Bitcoin bearish and bullish contexts
As reported by Finbold, Bitcoin is facing a challenging time amid settlements by the governments of Germany and the United States. Furthermore, Gox announced the refund of over $8 billion in BTCwhich had been awaited for more than a decade.
In this context, Bitcoin miners have started to capitulate with record reserves and produced hashrate. Meanwhile, longtime supporters like Peter Thiel have lost conviction in the fundamental value proposition of cryptocurrency.
However, BTC price remains within a four-month range, testing support at $60,000 and currently trading at $61,500. Cryptocurrency traders and investors still predict a bright future for Bitcoin, with projections ranging from $80,000 to $500,000, despite fundamental challenges.
BlackRock (NYSE: BLACK) and another Bitcoin ETF in Spot broadcasters continue to promote the maiden cryptocurrency among the traditional finance investors, which should generate demand in the medium term. Wall Street has recently sold considerable amountsbut the ETFs still show positive monthly capital flows, indicating an upward bias.
However, anything can happen when trading volatile assets such as cryptocurrencies. Speculators should be cautious about gaining too much exposure through leverage and understand the risks inherent in these trades.
Disclaimer: The content of this website should not be considered investment advice. Investing is speculative. When investing, your capital is at risk