Bitcoin on edge: Short sellers vs a $86,600 BTC breakout
Bitcoin [BTC] price action has been the topic of the week, and recent data from Binance and IntoTheBlock has sparked fresh speculation on the king cryptoâs next move.
With a significant portion of the market participants going short and a surge in active addresses, there is a lot to unpack.
Majority of Bitcoin traders go short
According to the Coinglass data, 58.23% of all accounts in Binance with open Bitcoin positions are going short. This reflects very strong sentiment that market participants expect the price of Bitcoin to drop.
However, on the other side, such short positioning can also create sudden price jumps when Bitcoin does move against the crowd and forces those traders to cover their positions.
Bitcoin trading activity heats up
According to IntoTheBlock, Bitcoinâs active addresses surged by 19% to 764.38K in the last 24 hours. This jump in activity often marks increasing interest and participation in the market, which could suggest a potential price move.
More active addresses hint at rising demand, adding more weight to the potential upward rally.
Bullish liquidity signals a potential upswing.
Even with the shorts positions on, liquidity data still depicts a bias to more bullish sentiment. One key price level to watch will be the $68,600 level, where $49.02 million in BTC could get liquidated.
This suggest many of market participants are still expecting an upward Bitcoin rally, similar to recent trading activity.
$67,400 breakout could spark a rally
Bitcoinâs immediate resistance level sits at $67,400. If it price manages break through this significant price level, the next potential target level could be $86,600 according to a renown Crypto analyst.
