Recent data reveals that around 70% of these traders are adopting buy positions, reflecting great optimism among elite traders on the platform.
As of August 1, 2024, 69.3% of accounts held long positions, while only 30.7% held short positions, according to Binance Order Distribution.
This reflects a long/short ratio of 2.26, indicating a strong preference for long positions.
These preferences reflect a widespread belief among traders that the current decline in Bitcoin's price is just a temporary setback, and that they expect a rebound soon.
This perception can be reinforced by analyzing the Bitcoin price chart, where the price recently fell to the 100 EMA, which represents a crucial support level at $63,000.
In previous periods, the 100 EMA has proven to be a strong support level during periods of decline.
If Bitcoin can maintain this level of support, it could create a solid base for a future rally.
However, there are warning signs to watch out for.
Such trading volume has declined recently, which may indicate weak momentum.
Low trading volume usually indicates weak confidence in price movements, which means that if buying interest does not increase, the current decline may continue.
In addition, the Relative Strength Index (RSI) indicates a neutral condition, as it stabilizes around the 50 level.
This indicates that there is uncertainty about the market direction, and that Bitcoin is neither overbought nor oversold.
The current convergence of the moving averages at the $63,000 level makes this price a critical point worth monitoring.
The preference of large traders on Binance for long positions reflects their belief that prices will recover soon, perhaps based on the historical performance of Bitcoin, which often indicates a rise in the price after reaching important support levels.
