The world’s largest cryptocurrency Bitcoin (BTC) continues with its strong rally and is up by another 2.24% moving past $30,000 levels. However, the derivatives data shows that the Bitcoin short positions are piling up once again.
BTC Shorts Above $30,000
Popular crypto market analyst Ali Martinez explains that with Bitcoin at approximately $30,000, about 60% of all Binance accounts holding open $BTC futures positions are taking short positions!
— Ali (@ali_charts) October 22, 2023
The analyst further expects an impending price correction for the cryptocurrency based on the technical chart setup. There’s a growing discussion about the potential development of a head-and-shoulders pattern in Bitcoin’s daily chart, said Martinez.
The $BTC daily chart suggests a potential sell signal forthcoming tomorrow, as the TD Sequential indicator shows a green 9 candlestick. Additionally, the RSI has reached 74.21, a level that has triggered significant corrections since March. It seems a looming price correction is on the horizon unless #BTC can achieve a daily candlestick close above $31,560, he added.
Bitcoin Outperformance Continues
Bitcoin has registered a phenomenal rally this year in 2023 and currently stands at more than 80% gains since the beginning of the year. The world’s largest cryptocurrency has certainly outperformed other cryptocurrencies and equities, despite the macro challenges.
The 10-year US Treasury yields currently at their 16-year highs haven’t impacted Bitcoin much, as they have impacted Ethereum and other altcoins. Also, the news about the Bitcoin ETF approval happening soon has further been a catalyst to this recent price rally.
Bitcoin is locked in a fierce battle around the $30,000 level, with a silver lining being that buyers haven’t conceded significant territory. The ongoing consolidation near this point signals the bulls’ reluctance to cash in on gains, as they foresee a potential upward move. This could potentially propel the price into the resistance zone spanning $31,000 to $32,400.
On the flip side, a retreat from the $31,000 mark could lead the BTC/USDT pair down to the 20-day exponential moving average at $28,160. A bounce from this level might prompt the bulls to once again attempt to surpass the overhead barrier.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.