Bitcoin traders are buzzing with excitement today over BTC’s impressive rebound to $64,000. The cryptocurrency’s resurgence has injected optimism among holders and traders alike, stabilizing around the $64,000 mark with minimal fluctuations over the past day.
At the moment, BTC is trading at $64,385.50, marking a 1.78% increase in the last 24 hours. However, trading volume has dipped by 11.18% during this period.
Despite the recent price surge, holders are yet to see substantial profits. Nonetheless, this could bode well for BTC in the short term, as holders are expected to retain their positions until prices surpass a certain threshold. However, a potential challenge to BTC’s rally lies in the declining Long/Short difference, indicating a decrease in long-term holders and a rise in short-term ones.
The sentiment and commitment of these short-term holders will significantly influence BTC’s future price movements. Meanwhile, the derivatives market is showing signs of strength, with a notable reset in Funding Rates post-price drop, suggesting a decrease in market leverage. Additionally, Open Interest as a percentage of market cap has dropped below 2% for the first time since February, indicating reduced market leverage, which can mitigate risk in the long term.
Despite these positive indicators, traders remain somewhat skeptical, with data from Coinglass revealing a higher percentage of short positions compared to long positions against BTC.
