- Technical indicators suggested capital inflows for Bitcoin.
- On Binance, however, most of the accounts went short as of this writing.
Bitcoin [BTC] flexed its muscles after breaching the $30,000 mark, as the weekend rally injected some more volatility into the wider crypto market. The king coin exchanged hands at $30,700 at the time of writing, the highest in the last three months, according to CoinMarketCap.
How much are 1,10,100 BTCs worth today?
Big expectations from Bitcoin
Bitcoin’s spiral reignited optimism in the market, with many investors betting on a sustained price climb in the short term.
According to Coinglass, there was an increase in the number of traders opening long positions vs. those going short in the last 24 hours. This was a dramatic flip, as bearish leveraged traders were dominant for much of the weekend.
Source: Coinglass
Binance tells a different story
Interestingly, a different story unfolded on the world’s largest crypto derivatives exchange, Binance [BNB]. According to Hyblock Capital, an overwhelming percentage of accounts on the platform, nearly 60%, were still positioned for price losses.
Not only that, but the top traders on the exchange also followed a similar strategy. Just about 42% of the accounts with the highest margin were hopeful that Bitcoin’s value would rise further.
Source: Hyblock Capital
However, in the broader market, indicators pointed towards a domination of longs. As the Open Interest (OI) rose in the last 24 hours, market buy volume surpassed the sell volume. This implied that longs entered the market through aggressive orders.
Source: Hyblock Capital
Technical indicators were bullish
The Relative Strength Index (RSI) reflected the bullish sentiment of the market. The momentum indicator was flying above the overbought threshold at the time of writing, implying that BTC was trading slightly above its true worth.
However, note that technical analysts frequently view such occurrences as a precursor to a small or big correction.
Moreover, the On Balance Volume (OBV) continued to move in an ascending trajectory, suggesting capital inflow into the market.
Source: Trading View/BTC-USD
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Meanwhile, despite the noise all around, the sentiment around Bitcoin was neutral, as per the latest readings from Fear and Greed Index.
However, with the highly volatile crypto market, one can never be too confident, and it would not be surprising if the mood shifts radically to “greed” or “fear” in the near future.
Bitcoin Fear and Greed Index is 53 – Neutral
Current price: $30,527 pic.twitter.com/rzjuI1Q3Q9— Bitcoin Fear and Greed Index (@BitcoinFear) October 23, 2023