Since holding the $60k support a week ago, Bitcoin has shown some strength, with bullish pressure intensifying. The upside momentum pushed $BTC to $67k before a slight pullback.
At press time, $BTC traded at $65,695, down 1.14% on the daily charts. Prior to this slip, the crypto had been on a strong upward trajectory, rising 7% on weekly charts.
Despite the price slip, traders on the daily charts have remained bullish and strategically positioned for further gains.
Bitcoin trader opens a $68 million long
With Bitcoin [$BTC] showing relative strength, traders on the derivatives market have turned bullish. As a result, the market is seeing a significant surge in demand for long positions, especially from whales.
Onchain Lens reported one such trader. A trader opened a 20x long position on 1036 $BTC worth $68.1 million.
So far, the trader is down $705k, as $BTC retraced to $65k, having spent $12k on funding. Previously, as the market was dropping, the whale had realized over $4 million in profit shorting the market.
When high-net-worth traders flip longs, it signals rising confidence in the market. That traders currently expect the uptrend to continue.
Derivatives overly bullish
Interestingly, the whale mentioned above was not an isolated case. In fact, market participants have shown a greater appetite for leveraged positions.
According to CoinGlass data, traders deployed significant capital into the derivatives market. Over the past 24 hours, $9.17 billion flowed into Futures, adding to the $25.7 billion recorded over the past 3 days.
Capital flowing into the market suggests that traders used more money to open new positions. In that regard, it seems those positions were mostly longs.
CoinGlass data showed that the Long Short Ratio jumped to 1.007. The ratio remained above 1 across Binance and OKX, with the top traders’ ratio hitting 1.5.
A ratio above 1 suggested that most traders were bullish and opened longs, anticipating the uptrend to continue.
What’s next for $BTC?
Historically, a high demand for leveraged positions has caused short-term price pumps. At the same time, the risk of liquidations has historically led to sharp price drops.
For now, Bitcoin is showing signs of recovery, although momentum remains weak. Looking at the Relative Strength Index (RSI), while it bounced from oversold, the indicator still sits below 50 at 42.
At the current level, it suggests buyers have stepped in, but they have yet to fully retake the market. This implies bulls have an upper edge, but bears still remain.
To fully retake the market, bulls need a clear close above the long MA at $66,066 and flip $70k. Failure to do so will cause $BTC to drop below the short MA at $65k, most likely to $63,500.
- A Bitcoin trader opened a 20x long position on 1036 $BTC worth $68.1 million amid rising leverage.
- Bitcoin [$BTC] shows signs of recovery, but upside momentum remains relatively weak.
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