Bitcoin climbed 1.46% to $108,000, but retail investors increased their short positions on exchanges.
If buying pressure remains steady, short positions from retail investors could be liquidated, pushing BTC prices closer to the old high.
Bitcoin [BTC] hit $108,000 on June 25, shortly after the US Federal Housing Finance Agency (FHFA) officially allowed BTC to be used for mortgage payments.
However, beneath the bullish momentum, retail investor sentiment turned negative. Traders continued to sell assets, while institutional investors took advantage of the uptrend to accumulate.
TinTucBitcoin analysis shows that many individual investors could suffer large losses in the coming days.
Retail Investors Sell Off Despite Rising Prices — Why?
In the past 24 hours, the number of short orders opened by individual investors has increased dramatically.
The Long/Short ratio of retail investors, an indicator used to gauge buying or selling trends, has dropped sharply, confirming that short selling activity is increasing.
Source: Alphractal
This is one of the strongest increases in selling volume in recent times. The heat map shows a deep red color at BTCUSDT, proving that the selling pressure is getting stronger and faster.
Not only that, Funding Rate also reflects this negative sentiment.
Tweet from Alphractal commented,
“Retail investors are increasingly increasing their short positions… and the aggregate Funding Rate has turned negative again.”
Source: Alphractal
Sentiment plummets as BTC holds steady
Negative sentiment is not limited to a single indicator.
Leveraged traders' Sentiment ratio also dropped sharply, approaching 1, signaling that speculators expect prices to correct downwards, even though BTC remains stable above the $107,000 threshold.
Source: Alphractal
Surprisingly, this downtrend started around June 22, when BTC approached $102,400. Since then, sentiment indicators have begun to decouple from price action.
This divergence opens up a scenario of massive liquidation of short positions.
Institutional Investors Step Up to Support Bitcoin Bull Run
While individual investors are withdrawing capital, organizations continue to buy, and cash flows are pouring in strongly.
According to data from CoinGlass, in the past 24 hours, institutional investors bought $547.7 million worth of Bitcoin, mostly through spot Bitcoin ETFs.
Source: CoinGlass
This positive trend continued throughout the week with total capital spent on Bitcoin reaching over $1.48 billion.
The large capital inflow signals a rotation from traditional markets to the crypto market, possibly setting the stage for the next strong bull run.
Additionally, the Fund Premium Index – a measure of investor sentiment in products like Grayscale – has also just entered positive territory.
The index currently stands at 0.17, indicating that funds are more actively buying BTC than before.
Source: CryptoQuant
History shows that whenever the Fund Premium Index increases, Bitcoin rallies are also strong.
If institutional buying continues and BTC holds its current levels, retail short positions could face a large risk of liquidation.
Alphractal's Comment:
“The sellers are at risk of being liquidated at any moment.”
Given the magnitude of the short leverage, a sudden spike could create a chain reaction of liquidations, pushing Bitcoin prices far beyond current levels.
Source: https://tintucbitcoin.com/bitcoin-len-108k-usd-trader-hoi-han/
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