CoinInsight360.com logo CoinInsight360.com logo
America's Social Casino

CoinDesk 2025-05-22 11:39:03

Why Are Bitcoin Traders Aggressively Shorting as BTC Hits New Record High?

Bitcoin {BTC} galloped to a new record high above $110,000 on Thursday, liquidating around $500 million worth of derivatives positions in its wake, but some traders aren't buying into the bullish sentiment. Trading volume jumped by 74% in the past 24 hours as traders attempted to position themselves, however the majority of these traders are opting to go short -- or bet on bitcoin moving downwards. Coinalyze data shows that the long/short ratio is at its lowest point since September 2022, which was the midst of crypto winter. This trend began on April 21 as traders aggressively shorted the breakout above $85,000, seemingly under the impression that bitcoin had already formed its cycle high and that any subsequent move would form a double top. However, despite a lack of retail participation , bitcoin continued to grind higher, taking out levels of resistance at $97,000 and $105,000 on its path. The move can be attributed to a number of factors; a recovery in U.S. equities as tariff concerns cooled, a rise in institutional activity on exchanges, like the CME, and crucially a wealth of short positions to squeeze and force prices higher. While these short positions might be considered bearish in terms of market structure, they are actually fanning the flame to the upside as it gives bullish traders areas to target and conduct stop-loss hunts like we saw earlier this week. Shorting an asset's record high is not necessarily a bad strategy; a trader will often opt to enter a short position at a level of resistance, whether that be technical or psychological, and layer stop losses above where the thesis of a short trade would be invalidated. In this case, if a trader shorted $105,000 on each of BTCs three tests of that area, they could have closed their position in profit on three occasions at $102,000, meaning that even if they were stopped out of the trade at $109,000, it would be a profitable week. Alongside the continued rise in short positions we have seen open interest jump disproportionately to BTC. Over the past 24 hours BTC is up 4.8% while open interest is up by 17% despite hundreds of million being liquidated. This indicates that the record high break is driven by leverage and might be less sustainable that the initial drives above $100,000 in December and January. It remains to be seen whether interest in short positions continues to rise if BTC rolls on with its momentous move above $111,000, but there is certainly a minefield of short positions to squeeze if it needs some ammunition. Read more: Bitcoin's Rally to Record Highs Puts Focus on $115K Where an 'Invisible Hand' May Slow Bull Run

阅读免责声明 : 此处提供的所有内容我们的网站,超链接网站,相关应用程序,论坛,博客,社交媒体帐户和其他平台(“网站”)仅供您提供一般信息,从第三方采购。 我们不对与我们的内容有任何形式的保证,包括但不限于准确性和更新性。 我们提供的内容中没有任何内容构成财务建议,法律建议或任何其他形式的建议,以满足您对任何目的的特定依赖。 任何使用或依赖我们的内容完全由您自行承担风险和自由裁量权。 在依赖它们之前,您应该进行自己的研究,审查,分析和验证我们的内容。 交易是一项高风险的活动,可能导致重大损失,因此请在做出任何决定之前咨询您的财务顾问。 我们网站上的任何内容均不构成招揽或要约