U.Today – Binance traders are seizing the opportunity to buy the dip. Recent data shows that nearly 70% of these traders are long BTC, demonstrating a very bullish attitude among the platform’s elite traders.
As of August 1, 2024, 69.3% of accounts were long and 30.7% were short, according to Binance order distribution. This indicates a long/short ratio of 2.26. Significantly favoring long positions implies that top traders think Bitcoin’s current drop is just a temporary setback and anticipate a rebound.
You can get more context by looking at the Bitcoin price chart. Recently, the Bitcoin price dropped to the 100-day EMA, which is currently acting as a crucial support level at $63,000. In the past, the 100-day EMA has been a crucial support level during downtrends. If Bitcoin manages to hold its current support level, this could set a solid foundation for a future rally. Still, there are warning signs.
Volume has been falling, suggesting that momentum is waning. Lower conviction behind price moves is often indicated by lower trading volumes, suggesting that if buying interest does not increase, the recent decline may continue. Additionally, the relative strength index (RSI) reading, which is centered around 50, is neutral.
This indicates that there is some uncertainty regarding the market direction and that Bitcoin is neither overbought nor oversold. This price is confirmed as a crucial point to monitor with the convergence of the EMAs at the $63,000 mark. The significant tendency of top traders to hold long positions on Binance suggests that they are betting on a price rally.
Their confidence may be due to its past performance, which shows that Bitcoin frequently rises after reaching important support levels. This pattern indicates that an upward trajectory could soon be seen for Bitcoin, confirming the bullish sentiment.
This article was originally published on U.Today
