Bitcoin (BTC) Long/Short Ratio Signals Growing Bearish Bias, But Bulls Remain in Control

Despite Bitcoin [BTC] trading at $104,500 and maintaining a strong upward trend, the long/short ratio on Binance reveals nearly 60% of traders

Bitcoin [BTC] price at the time of writing was trading around $104,500, maintaining a strong upward trend. However, a closer look at the long/short ratio on Binance revealed that nearly 60% of traders were holding short positions.

This signaled a growing bearish bias among traders despite BTC continuing its rally.

Bitcoin price movements and traders’ bearish sentiment

The latest long/short ratio data analysis on Coinglass highlighted that nearly 60% of traders on Binance were holding short positions against Bitcoin. This significant skew toward bearish sentiment reflected cautious sentiment among market participants, even as BTC continued its upward trend.

The long/short ratio charts depicted a consistent dominance of short positions over the last two trading sessions. The trend suggested that many traders were hedging against a possible correction or overbought conditions.

Interestingly, this bearish sentiment came at a time when Bitcoin has maintained a strong price trajectory, trading around $104,500. Such a divergence between sentiment and price performance may hint at underlying market strength, with bears potentially setting themselves up for liquidation in the event of further upside momentum.

Liquidation trends: Shorts face increasing risk

Over the past two trading sessions, the liquidation data revealed that short positions faced heavier liquidations than longs. The most recent trading session saw a notable spike in short liquidations, at 68.78 million for shorts and $13 million for longs.

This surge indicated that bearish traders, anticipating a pullback, were being caught off-guard by Bitcoin’s resilience above key psychological levels.

When combining this liquidation trend with the high percentage of short positions, it became evident that BTC’s upward momentum had placed significant pressure on leveraged bears.

Traders needed to closely watch the liquidation levels, as further price increases could trigger additional short squeezes, potentially propelling BTC higher.

Bitcoin price movements bullish on daily RSI and moving average signals

Bitcoin’s price action remained bullish on the daily timeframe, supported by technical indicators signaling strong upward momentum. The Relative Strength Index (RSI) currently sat at 67.65, indicating that BTC was approaching overbought territory but still had room for further upside.

Historically, RSI levels near 70 were accompanied by short-term corrections; however, Bitcoin’s ability to sustain current levels could invalidate immediate bearish concerns.

Moreover, BTC’s price was trading well above its 50-day and 200-day moving averages, further reinforcing the bullish outlook. The Golden Cross continued to act as a strong support for the ongoing rally.

A close above $105,000 could open the door to testing $110,000, while immediate support lay around $100,000.

The current bearish positioning among traders appeared misaligned with Bitcoin’s strong upward momentum. With short liquidations piling up and BTC maintaining key support levels, the market could be primed for further gains if short traders capitulate.