Bitcoin is regaining attention as the world's largest digital asset attempts to recover after a significant correction last weekend. After peaking above $123,000 in July, BTC has declined to around the bottom at $112,000. However, the latest data shows that a recovery trend is underway as the price has now surpassed $116,000.
Although the recovery momentum seems positive, some analysts warn that the current market sentiment is becoming overly optimistic — a factor that often suggests the possibility of short-term corrections. Recent analyses from the CryptoQuant QuickTake platform have indicated several notable signs, particularly data on trading positions on the Binance exchange.
Skewed Trading Sentiment: Warning Signs of Reversal
According to expert analysis from BorisVest, data from Binance shows a clear discrepancy between Long (buy) and Short (sell) positions, with a strong trend leaning towards Long as the price of BTC rises from $112,000 to $115,000. This is evidenced by the "sentiment" chart on Binance, where dense green bars begin to appear — indicating increasing confidence in the possibility of further price increases.
However, BorisVest warns that such "green bars" are often short-term reversal indicators:
"When too many people expect prices to rise, the market often tends to react inversely to rebalance," he stated.
As the exchange with the largest trading volume in the market, data from Binance is considered a reliable representation of the behavior of the majority of investors. Therefore, a large concentration of Long positions while prices are recovering could be a sign of an imminent profit-taking.
BorisVest further noted that if Bitcoin undergoes a deep correction, the level below $110,000 could be a reasonable support area where long-term investors might consider accumulating again.
Leverage Ratio Decrease: Positive Signal or Concern About Weak Demand?
In a related analysis, analyst Arab Chain from CryptoQuant also indicated that the leverage ratio on Binance is trending downwards. This is an indicator that traders using high leverage are withdrawing from the market, helping to mitigate the risk of mass liquidations and calming short-term volatility.
"Low leverage ratios often accompany less speculative investment behavior, thereby contributing to more stable prices," Arab Chain explained.
However, he also noted that the simultaneous decline in both leverage and price may reflect a larger weakness: that demand from the spot market remains low. In the context of weak buying power, the sustainable recovery of Bitcoin is in question.
Summary
Bitcoin is experiencing a slight recovery after a sharp decline, but sentiment and trading behavior indicators suggest the market may not be fully stable yet. The strong increase in Long positions and the decrease in leverage ratio are mixed signals — reflecting both investor caution and warning of potential further corrections if buying pressure is not strong enough to maintain the upward momentum. Investors need to closely monitor important technical support zones and behavior on major exchanges like Binance to make reasonable decisions in the current sensitive market phase.