The sentiment metric, which reflects the long-short position balance on Binance, has once again started to cluster in the positive zone. As seen in the chart, the green bars representing positive sentiment have increased notably alongside Bitcoin's rise from $112K to $115K. This suggests that traders are increasingly leaning toward long positions.
However, such sudden sentiment surges often precede corrections. Historically, when positive sentiment becomes excessive, price tends to pull back in order to "punish" overly optimistic positioning. The current increase in long positions during a price rise could indicate the beginning of profit-taking or selling pressure.
Since Binance ranks first in trading volume, trader behavior on this platform strongly reflects broader market sentiment. In this context, the latest sentiment data may indicate a temporary period of price suppression. In the short term, upward moves could be viewed as selling opportunities.
Currently, with price sitting around $115K, I believe that for a meaningful correction to take place, a drop below the $110K level is necessary. A pullback into that region would help maintain structural market health and provide better entry opportunities for buyers.
Written by BorisVest
