What? Bitcoin short positions surge as profit-taking increases!
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Bitcoin (BTC) struggled to break out for most of 2024, and it was not until after the U.S. presidential election on November 5 that the cryptocurrency market ushered in a bull run.
On December 16, Bitcoin price reached an all-time high (ATH), breaking through the $106,000 mark, although it quickly fell back below $100,000.
Overall, the price of Bitcoin increased by 119.03% in 2024.
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Since then, Bitcoin has found strong support near $92,600 and is currently struggling to stay above $95,000. As of now, Bitcoin is trading at $96,800, up slightly by 2.53% since January 1.
The overall market sentiment remains optimistic, but more and more investors are choosing to lock in gains. While this doesn’t necessarily mean the market has turned bearish, the proportion of Bitcoin’s short positions has increased significantly since the beginning of 2025.
So, are Bitcoin investors ready for another pullback?
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Well-known technical analyst Ali Martinez said that compared with previous market cycles, Bitcoin’s relative strength index (RSI) is still far from reaching its peak. He noted in an X platform post on January 3 that short interest has indeed increased recently.
Institutional investors such as BlackRock, along with well-known investors such as Robert Kiyosaki, remain optimistic about Bitcoin’s prospects.
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According to data obtained by Finbold from Binance, on the last day of 2024, Bitcoin’s long positions accounted for 67.1% and short positions accounted for 32.9%.
But by January 3, the situation had changed – now only 53.4% of open positions were long, while short positions had risen to 46.6%. While the market has not completely turned bearish yet, the long/short ratio dropped from 2.04 to 1.15 in just a few days. If this trend continues, short positions may overtake long positions in a very short period of time.
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