The post Bitcoin’s Long/Short Ratio Reaches Multi-Month High! Is BTC Price Finally Preparing For ETF Pump? appeared first on Coinpedia Fintech News
Despite significant anticipation around spot Bitcoin exchange-traded funds, Bitcoin’s price remains under selling pressure at key resistance levels, with short-term holders consistently capitalizing on minor price rallies. The lack of a positive market reaction following regulatory approvals has seemingly led traders to secure profits, contributing to a notable decline to $41,500. Amidst this selling trend, there’s a rising hope for recovery as the bullish sentiment strengthens, seen by the long/short ratio hitting its highest point in several months.
Are Bulls Getting Ready For An ETF Pump?
In recent days, Bitcoin’s price has seen significant volatility, hovering between a wide range of $41,500 and a high of $49,000. This fluctuation led to substantial liquidations, with many short-term holders who had made high profits opting to sell at the market’s peak, thereby consolidating Bitcoin’s price.
In the past 24 hours, Bitcoin experienced another round of liquidation, with its price quickly falling from a high of $43,000 to around $41,700. This drop contributed to a spike in total liquidations, reaching $28 million, including the liquidation of approximately $18.5 million in long positions by buyers. This shift has developed a strong accumulation phase, with traders actively initiating long positions in response to the price dip.
Recent data indicates that Bitcoin’s long/short ratio has reached a multi-month peak of 2.83, a significant measure of investor sentiment. A high long-short ratio suggests a predominantly bullish outlook among investors regarding Bitcoin’s price.
Over the last 24 hours, there’s been an increase in this ratio, now standing at 2.86. This current level is notably high, especially as long positions are dominating the short ones, a trend emerged following Bitcoin’s recent price dip. This sentiment could put buying pressure on Bitcoin to break out of its current price consolidation, particularly as BTC has once again crossed into the $43K territory.
What’s Next For BTC Price?
Bitcoin has experienced significant volatility recently as sellers plunged BTC price toward $41,700 only to initiate a short-term pump toward $43K. Both bulls and bears are currently in a robust battle to validate a clear move for BTC price. As of writing, BTC price trades at $42,623, declining over 0.5% from yesterday’s rate.
The 20-day exponential moving average (EMA), currently at $43,327, is showing a downward trend, and the relative strength index (RSI) hovers below the midpoint. These signs suggest that bears are controlling the momentum.
Should the price remain below moving averages, Bitcoin could fall to $40,000 and test buyers’ patience. If buyers fail to rebound the price, Bitcoin might consolidate around $38K next. To avoid the bearish analysis, buyers need to drive the price above $44,000 from current level.
In such a case, there’ll be renewed buying interest and we might see the BTC price aiming for a trend near the ascending resistance line at $48,300. If buyers successfully overcome this level, Bitcoin might skyrocket toward $49K-$51K.
