Source: Cointelegraph
Original: “Bitcoin (BTC) Strongly Rebounds: Bulls Aim for $100,000 Mark, Bears Rush to Cover Shorts”
Key Points Summary:
Bitcoin maintained above $93,000 on April 24, suggesting that the 52-day bear market may have ended, with a low of $74,400. Although Bitcoin has begun to show signs of decoupling from the stock market, professional traders have not changed their strategies, as indicated by Bitcoin futures and margin market data.
A higher long-to-short ratio reflects a greater inclination towards long (buy) positions, while a lower ratio indicates a preference for short (sell) contracts. Currently, the long-to-short ratio for top traders on the Binance platform is 1.5 times, down from 2 times ten days ago. On the OKX platform, this ratio was close to 1.1 times on April 17 but has since lost momentum, currently standing at 0.9 times.
Bitcoin Shines Amid Weakening Dollar and Downgraded S&P 500 Targets
Bitcoin's 10% rebound between April 20 and April 24 coincided with U.S. President Trump taking a more moderate stance on import tariffs and criticizing Federal Reserve Chairman Powell, who has faced backlash for maintaining high interest rates. On April 24, Trump stated he had "no intention" of firing Powell, marking a significant shift from his previous rhetoric.
In the face of economic uncertainty, Deutsche Bank strategists downgraded their year-end S&P 500 target by 12% to 6,150 points. Meanwhile, the U.S. dollar weakened against other major currencies, pushing the DXY index below 99, marking its first low in three years. Despite a 6% increase in Bitcoin over the past 30 days, its performance has made it one of the top eight tradable assets globally, with a market capitalization of $1.84 trillion.
The sharp rise of Bitcoin above $90,000 caught bearish Bitcoin traders off guard, leading to over $390 million in leveraged short (sell) futures positions being liquidated between April 21 and April 22. More importantly, the total open interest in Bitcoin futures is still only 5% below its historical peak, indicating that bearish traders have not fully exited their positions.
If Bitcoin's price maintains its upward momentum and breaks through $95,000, according to CoinGlass data, an additional $700 million in short (sell) futures positions could be liquidated. This potential short squeeze could particularly challenge bears, especially in light of strong inflows into Bitcoin spot exchange-traded funds (ETFs), with total inflows exceeding $2.2 billion between April 21 and April 23.
A joint venture announced by SoftBank, Cantor Fitzgerald, and Tether plans to accumulate Bitcoin through convertible bonds and equity financing, which could further bolster bullish arguments. The company, named “Twenty One Capital,” is a Bitcoin vault company led by Strike founder Jack Mallers, planning to launch with a scale of 42,000 Bitcoins.
Top traders' reactions in the Bitcoin margin and futures markets have been relatively muted, indicating that recent buying pressure has primarily come from the spot market, which is often seen as a positive sign for a sustainable bull market.
The longer Bitcoin consolidates above $90,000, the greater the pressure on shorts, as this price level strengthens the narrative of Bitcoin decoupling from the stock market. This could provide the necessary confidence to challenge the psychological barrier of $100,000.
Related: Nvidia's Accelerator Program No Longer Accepting Cryptocurrency Startups
This article is for general informational purposes only and is not legal or investment advice. The views, thoughts, and opinions expressed in the text are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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