Bitcoin [BTC] price action has been a hot topic this week, and new data from Binance and IntoTheBlock has sparked fresh speculation about what’s next for the king of cryptocurrencies.
With a significant portion of market participants shorting and a surge in active addresses, there are a lot of issues that need to be addressed.
Most Bitcoin traders are short
According to Coinglass data, 58.23% of all Binance accounts holding Bitcoin positions are in a short position. This reflects that market participants have very strong expectations for a drop in Bitcoin prices.
However, on the other hand, this short position can also lead to a sudden price surge when Bitcoin moves against the crowd and forces those traders to cover their shorts.
Bitcoin trading activity heats up
According to data from IntoTheBlock, Bitcoin’s active addresses surged 19% in the past 24 hours to 764.38K. Such a surge in activity typically signals increased interest and participation in the market, which can signal potential price moves.
More active addresses suggest rising demand, adding more fuel to a potential rally.
Bullish liquidity signals a potential upside.
Even with short positions unchanged, liquidity data still shows a bullish sentiment bias. A key price level to watch is $68,600, when $49.02 million in BTC could be liquidated.
This suggests that many market participants still expect Bitcoin to rise, similar to recent trading activity.
A break above $67,400 could spark a rally
The immediate resistance level for Bitcoin is $67,400. If the Bitcoin price manages to break above this important price level, the next potential target level could be $86,600.
Although most traders hold short positions, the rise in active addresses and liquidity metrics tells a different story.
Bitcoin is about to break the $67,400 price level and could surge to $86,600.
