The upward trajectory of Bitcoin (BTC) remains strong, as it reached a fresh all-time high (ATH) of $111,999 on Binance exchange before settling at around $110,000. Despite the overall bullish trend, some crypto analysts are predicting a minor pullback in the near term.
A recent Quicktake post on CryptoQuant by BorisVest points to early indicators that suggest a temporary correction may be on the horizon for BTC. The analyst warns that unless BTC gains positive momentum soon, it might struggle to sustain its bullish path.
Binance’s taker buy/sell volume recently showed a significant increase in aggressive buy orders, typically a bullish signal. However, the sell volume has also concurrently risen, effectively neutralizing much of the demand. Despite this surge in buy volume, BTC’s price has not shown a proportional response, indicating the possibility of distribution or selling pressure.
Moreover, Binance’s open interest has spiked during the recent price rally, indicating an influx of leveraged positions. Although rising open interest can support further gains, the muted price reaction raises questions about Bitcoin’s short-term strength.
Meanwhile, funding rates have remained relatively neutral throughout the rally. Yet, the recent push to a new ATH has seen BTC’s funding rates turn slightly positive, signalling increased long exposure and renewed bullish sentiment.
Simultaneously, the price breakout led to significant short liquidations, likely driving a short squeeze. According to Coinglass, over the past 24 hours, $521 million in positions were liquidated, with $448 million of those being short positions.
In conclusion, BorisVest argued that despite some cautionary signs, Bitcoin’s overall bullish structure remains unbroken. However, the market is beginning to show early signs of a potential short-term pullback, particularly due to the spike-driven nature of the recent move.
Other analysts, like Christian Chifoi, believe the current price action could be a deceptive move designed to ensnare bullish traders, potentially pushing BTC down to $97,000 before the final rally commences. Regardless, the recent weakness observed in the US Dollar Index (DXY) has spurred hopes for a capital shift towards alternative assets, including BTC. As of press time, BTC trades at $110,885, up by 1.1% in the past 24 hours.
