Bitcoin has been on a downward trend since failing to break above $66,000 in early May, dampening hopes of immediate price gains post-Halving. An analyst shared on-chain data that provides a more nuanced perspective than just a loss of confidence in recent weeks.
The analyst pointed out that leveraged traders on platforms like Binance are closing more positions than opening new ones, with a monthly change in Open Interest at -20%. This indicates that traders are adopting a wait-and-see approach, closely watching price movements.
Despite the decrease in opening positions, this does not signal Bitcoin’s downfall or the end of a potential surge. Traders are strategically cautious and optimistic, as interpreted by the analyst. Additionally, the current wave of liquidation and negativity in the market is seen as an opportunity for accumulating short positions.
However, an increase in short positions could lead to a “short squeeze,” resulting in a sudden price spike and forcing sellers to buy back into the market. Bitcoin’s price remains within a narrow range, with resistance near $66,000 and a potential drop towards $60,000.
Traders are closely monitoring price movements post-Halving, as the approval of spot Bitcoin exchange-traded funds (ETFs) and institutional involvement were expected to boost prices. Despite these factors, prices have not seen a significant increase, with fluctuating inflows to spot ETFs and the Federal Reserve maintaining interest rates.