Bitcoin Nears $70,000: Is a Massive Drop Coming as Traders Bet Against It?

Bitcoin is nearing the $70,000 mark, rising by 3.32% in the last 24 hours, and reaching its highest level in six weeks after former U.S. President Donald Trump expressed his support for cryptocurrency over the weekend. 

Despite this bullish momentum, renowned crypto chart analyst Ali Martinez notes that 55% of investors with open BTC positions in Binance Futures are shorting Bitcoin, does it mean BTC could Fall?

55% of Traders Bet Against Bitcoin

According to Martinez’s analysis of the 4-hour Bitcoin chart, 55% of accounts with open BTC positions in Binance Futures are betting against Bitcoin by shorting it. This indicates a bearish sentiment among traders who expect a potential decline in Bitcoin’s price. 

On the other hand, 44.98% of investors are optimistic, believing that Bitcoin will surge from its current price level.

Meanwhile, the current long/short ratio stands at 0.82, suggesting that Bitcoin might face further downward pressure if it breaks below critical support levels. This ratio reflects the balance between those expecting a price increase and those predicting a decrease. 

However, the ratio below 1.0 often indicates a higher number of short positions, hinting at bearish expectations.

Bitcoin Open Interest Hits Record High

On the flip side, Bitcoin’s open interest, a metric that tracks the total number of open positions in the underlying asset, has reached an all-time high of $39.46 billion across all exchanges. This surpasses the previous record of $39.03 billion set on March 29, 2024.

The current peak indicates increased investor interest in Bitcoin, suggesting the potential for a breakout toward $71,500 mark, with the possibility of rallying to a new all-time high.

As of now, Bitcoin is currently trading at $69,631, up 3% in the last 24 hours, and is just 6% away from its all-time high. Despite this price surge, BTC trading volume has dropped by 33%, with a market cap of $1.37 trillion.