The world’s largest cryptocurrency Bitcoin (BTC) continues with its strong rally and is up by another 2.24% moving past $30,000 levels. However, the derivatives data shows that the Bitcoin short positions are piling up once again.
BTC Shorts Above $30,000
Popular crypto market analyst Ali Martinez explains that with Bitcoin at approximately $30,000, about 60% of all Binance accounts holding open $BTC futures positions are taking short positions!
As #Bitcoin hovers around $30,000, roughly 60% of all accounts on #Binance with an open $BTC futures position are going short! pic.twitter.com/5RcTDu5sfo
— Ali (@ali_charts) October 22, 2023
The analyst further expects an impending price correction for the cryptocurrency based on the technical chart setup. There’s a growing discussion about the potential development of a head-and-shoulders pattern in Bitcoin’s daily chart, said Martinez.
The $BTC daily chart suggests a potential sell signal forthcoming tomorrow, as the TD Sequential indicator shows a green 9 candlestick. Additionally, the RSI has reached 74.21, a level that has triggered significant corrections since March. It seems a looming price correction is on the horizon unless #BTC can achieve a daily candlestick close above $31,560, he added.
Courtesy: Ali Martinez
Bitcoin Outperformance Continues
Bitcoin has registered a phenomenal rally this year in 2023 and currently stands at more than 80% gains since the beginning of the year. The world’s largest cryptocurrency has certainly outperformed other cryptocurrencies and equities, despite the macro challenges.
The 10-year US Treasury yields currently at their 16-year highs haven’t impacted Bitcoin much, as they have impacted Ethereum and other altcoins. Also, the news about the Bitcoin ETF approval happening soon has further been a catalyst to this recent price rally.
Bitcoin is locked in a fierce battle around the $30,000 level, with a silver lining being that buyers haven’t conceded significant territory. The ongoing consolidation near this point signals the bulls’ reluctance to cash in on gains, as they foresee a potential upward move. This could potentially propel the price into the resistance zone spanning $31,000 to $32,400.
On the flip side, a retreat from the $31,000 mark could lead the BTC/USDT pair down to the 20-day exponential moving average at $28,160. A bounce from this level might prompt the bulls to once again attempt to surpass the overhead barrier.
