Bitcoin’s recent price surge may be attributed to a shift in market sentiment, according to data analytics firm Alphractal. The company analyzed on-chain data and found that leveraged traders are betting on a decline in the cryptocurrency’s value. However, this bearish trend has been reversed, with Bitcoin now showing signs of a fresh bullish momentum.
The rising interest in opening short positions in the Bitcoin market suggests that the sentiment is currently bearish. But Alphractal notes that when sentiment becomes overly bullish or bearish, the market often moves in the opposite direction. This metric can serve as a warning signal for potential contrarian moves that may catch traders off guard.
As of writing, Bitcoin’s price stands at around $105,700, up by more than 1% on the weekly timeframe and almost 2% in the past 24 hours. The recent resurgence has been attributed to the market leader bouncing back despite negative leveraged traders’ sentiment, which may lead to a new all-time high if these traders continue to bet against Bitcoin.
Source: https://www.tradingview.com/news/newsbtc:8ff446e84094b:0-bitcoin-leveraged-traders-are-back-betting-on-a-price-decline-what-this-means