While the general crypto market is slowly turning bearish, Bitcoin continues to hold above key support levels, which previously acted as strong resistance a few days ago. BTC’s renewed uptrend has attracted significant interest among investors, as observed by a rise in bullish bets, but the future may not be all promising.
Bullish Bets On Bitcoin’s Climb Pose Risk
Bitcoin’s long positions have risen sharply following the recent upswing in the asset’s price, indicating strong conviction in its prospects. Advanced investment and on-chain data platform Alphractal reported the shift in sentiment among institutional and retail investors.
According to the platform, large long positions have dominated the crypto exchanges for the last three months. This notable rise in long positions suggests that investors and traders are heavily confident about the ongoing trend and are betting on a rally in the near term.
While this development is pivotal for BTC’s current market dynamics, Alphractal warns of a potential fresh wave of liquidations. “After the recent price surge and short liquidations, holding longs now could increase your risk,” the platform added.
Alphractal hints at a possible new wave of liquidation as an overheated market and increasing leverage positions have previously preceded sharp corrections. This has raised concerns about BTC’s price sustainability as it hovers near key resistance levels. Thus far, Alphractal has urged investors to remain cautious and take profits, adjust their stop-losses, and manage risk sustainably.
Following the recent uptrend, renewed investors’ interest and confidence in BTC are also observed among whales as they continue to accumulate the asset. Glassnode, an on-chain platform, revealed that the whale investors are back in full force, pushing the BTC’s Accumulation Trend Score to positive levels.
The Accumulation Trend Score is a key metric that measures the intensity and consistency of large holder purchases. Interestingly, this metric has been maintaining a positive level since the beginning of April, reflecting robust buying pressure in spite of price fluctuations.
Data shows that the accumulation trend score for wallets holding at least 10,000 BTC is at a near-perfect accumulation level of 0.9. Furthermore, wallets containing between 1,000 BTC and 10,000 BTC have pushed their trend score to 0.7. Lately, wallet addresses with 100 BTC and 1,000 BTC also shifted toward accumulation as their trend score rises to the 0.5 level.
BTC’s Price Forms Inverse Head And Shoulders Pattern
In an X post, crypto information platform Coin Signals predicted a major move to new all-time highs for Bitcoin in the upcoming weeks. His prediction is based on an emerging bullish Inverse Head and Shoulders formation on the daily time frame.
At first, the expert noted that BTC is long from $76,000, suggesting that the asset might not reach this level again. Looking at the pattern, Bitcoin’s price is expected to hit a new all-time high before retracing to the $92,600 threshold and forming the right shoulder. After the correction to $92,600, Coin Signals points to a massive breakout that would push BTC to $140,000 by July.
Featured image from Pixabay, chart from Tradingview.com
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