According to data from Santiment, Bitcoin’s recent rise to $36,800 – its highest point this year – has seen traders betting against a fall in BTC’s price action. This 37% gain over 30 days has resulted in more traders opening long positions, anticipating further price increases, than short positions, which predict a price drop.
Increasing Bullish Positions
On-chain analysis of Santiment’s data reveals that open bullish positions are at their highest in three months. The total volume of outstanding futures contracts in the market, known as Open Interest, has also surged to $7.2 billion. When Open Interest rises, it signifies that more capital is being allocated to the asset. Conversely, a drop indicates that more positions are being closed. Alongside the rising price action, the spike in Open Interest suggests a strong backing for a continued BTC uptrend, with traders eyeing a $40,000 target.
Market Driven by FOMO
Currently, the market is experiencing a Fear of Missing Out (FOMO) sentiment. FOMO is a psychological phenomenon where investors and traders make irrational decisions due to the anxiety of missing out on potential gains. This is echoed by the Bitcoin fear and greed index, which currently sits at 74, according to Glassnode. This index ranges from zero (extreme fear) to 100 (extreme greed), with values in between indicating market indecision. High greed levels in the market suggest it may be overheated, making it risky for new entries.
Shorts Beware
Despite the high levels of greed, current liquidation levels suggest a significant drop may not be imminent. These levels, which are associated with margin accounts, are estimated price points that could result in traders’ funds being wiped out. Data from HyblockCapital suggests that short positions with high leverage, targeting $35,032, could be at risk of forced closure.
Looking at the BTC/USD 4-hour chart, Bitcoin’s rise to $40,000 appears unstoppable. This is backed up by the Awesome Oscillator (AO), which at the time of writing, stands at 971.28, indicating that the short-term Moving Average is greater than the longer period. The increasing green bars of the AO also signify that buyers are dominating the market, making it challenging for Bitcoin bears to achieve any significant gain.
For those interested in staying on top of these market trends, cryptoview.io offers a comprehensive view of the cryptocurrency market. Whether you’re a seasoned trader or a newbie looking to dip your toes in the world of crypto, cryptoview.io provides the tools you need to make informed decisions.
