Bitcoin Price Consolidates as Short Positions Build Up
The Bitcoin price rally seems to be taking a breather as it faces a partial retracement, dropping by 1% in the last 24 hours and moving closer to $64,000. On-chain data shows that Binance traders are opening fresh short positions for Bitcoin, anticipating another price correction.
According to on-chain data provider Santiment, there has been a significant drop in positive commentary surrounding Bitcoin despite a mid-sized bounce in the market this week. This has led many traders to open new short positions on Binance. However, Santiment believes that these factors could actually increase the likelihood of a price surge for Bitcoin in the near future.
Interestingly, the recent price rally has allowed BTC miners to offload some of their holdings, with reports indicating that nearly 2,000 BTC have been sold as the price rallied past $60,000.
On the other hand, CryptoQuant CEO Ki Young Ju has highlighted a significant decline in Bitcoin retail investor demand, reaching a three-year low. However, institutional players have been active in the market, leading to 100K weekly inflows via OTC Desks.
In the derivatives market, Bitcoin options worth $1.12 billion are set to expire today, with a put/call ratio of 1.17 and a max pain point of $62,000. This high put-call ratio signifies bearish sentiment among investors.
Inflows into spot BTC ETFs have continued, with BlackRock’s IBIT leading the trend. In the last ten trading sessions, IBIT has seen over $1.1 billion in inflows and has amassed 325,000+ BTC in just six months since its launch.
Overall, the market sentiment for Bitcoin remains mixed, with various factors at play that could potentially impact the price movement in the near future.
