Bitcoin Approaches 70000 Will a Significant Decline Follow Amidst Traders Bearish Bets

Key Points
– A majority of Binance Futures traders, 55%, are betting against Bitcoin, indicating a bearish outlook.
– Bitcoin’s open interest has reached a record high of $39.46 billion, signaling a potential price surge.
– Bitcoin is approaching the $70,000 mark, rising by 3.32% following support from Donald Trump, with the next target set at $73,000.

Bitcoin is on the verge of hitting the $70,000 milestone, with a 3.32% increase in the past day, marking its highest level in six weeks after former U.S. President Donald Trump voiced his support for cryptocurrency during the weekend.

Despite this positive trend, renowned crypto chart analyst Ali Martinez observes that 55% of investors holding open BTC positions on Binance Futures are taking short positions on Bitcoin, raising concerns about a possible drop in its price.

According to Martinez’s analysis of the 4-hour Bitcoin chart, the majority of accounts on Binance Futures are currently shorting Bitcoin, indicating a prevailing bearish sentiment among traders. On the other hand, nearly 45% of investors remain optimistic about Bitcoin’s potential for a price surge.

The current long/short ratio of 0.82 suggests that Bitcoin may face downward pressure if it breaches key support levels. A ratio below 1.0 typically indicates a higher number of short positions, hinting at bearish expectations in the market.

Meanwhile, Bitcoin’s open interest has surged to a record high of $39.46 billion, surpassing the previous peak set in March 2024. This spike in investor interest hints at a potential breakout towards the $71,500 mark, potentially leading to a new all-time high for the cryptocurrency.

At present, Bitcoin is trading at $69,631, up by 3% in the last 24 hours, and is only 6% away from its all-time high. Despite the price surge, BTC trading volume has dropped by 33%, with a market cap of $1.37 trillion.