Traders on Binance are taking advantage of the chance to purchase the decline of Bitcoin. Recent data shows that almost 70% of such traders are long on BTC, demonstrating a very bullish attitude among the platform's elite traders.
As of Aug. 1, 2024, 69.3% of accounts had long positions and 30.7% had short positions, according to Binance's orders distribution. This indicates a long/short ratio of 2.26. Significantly favoring long positions implies that the best traders think the current decline in Bitcoin is just a temporary setback and anticipate a bounce back.
You can get more context by looking at the Bitcoin price chart. Recently the price of Bitcoin fell to the 100 EMA, which is currently acting as a crucial support level at $63,000. In the past, the 100 EMA has been a crucial support level during downtrends. Should Bitcoin manage to maintain its current level of support, this could establish a solid foundation for a future upswing. Still, there are warning indications.
BTC/USDT Chart by TradingView
The volume has been dropping, which suggests that momentum is waning. Less conviction behind price movements is usually indicated by lower trading volumes, which suggests that if buying interest does not increase, the recent decline may continue. Additionally, the reading on the Relative Strength Index (RSI), which is centered around 50, is neutral.
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This indicates that there is some uncertainty regarding the direction of the market, and that Bitcoin is neither overbought nor oversold. This price is confirmed as a crucial point to monitor with the EMAs' convergence at the $63,000 mark. The significant tendency of top traders to hold long positions on Binance suggests that they are placing bets on a price rebound.
Their confidence may stem from past performance, which shows that Bitcoin frequently rises after hitting important support levels. This pattern indicates that an upward trajectory for Bitcoin could soon be observed, confirming bullish sentiment.
