$100K–$110K Range Shows Rising Short Interest

While Bitcoin (BTC) has remained range-bound – trading between $100,000 and $110,000 for about a month – both short and long positions have been building within this range, with short positions rising at a faster pace.

Bitcoin Long Positions Slightly Ahead But Shorts Catching Up

After reaching a new all-time high (ATH) of $111,814 last month, BTC has consolidated within the $100,000–$110,000 range for nearly a month, offering little clarity on its next directional move.

Related Reading

According to a new CryptoQuant Quicktake post by contributor BorisVest, fresh data from Binance crypto exchange suggests that long positions currently hold a slight edge in this range. 

Historical data reveals a pattern – when short positions rise, short squeezes tend to follow. Similarly, a buildup in long positions has often led to long squeezes. A decisive breakout from either end of the current range will likely determine Bitcoin’s next major move.

That said, Binance data indicates that while long positions are marginally ahead, the ratio of longs to shorts remains relatively balanced. The funding rate hovering near neutral levels supports this view, reflecting a closely contested standoff between bulls and bears.

However, such balance usually signals uncertainty in the market. While long interest has stabilized, short positions continue to climb – likely driven by expectations of further downside amid escalating geopolitical tensions in the Middle East. BorisVest noted:

This shows that most market participants believe the rally may not continue. When Bitcoin’s price starts to fall, and funding rates turn negative, it means shorts are piling in quickly. All of this points to this range being a highly sensitive zone.

He further noted that with most traders leaning toward short positions, the setup could be ripe for a surprise move in the opposite direction – possibly fuelled by quiet accumulation from larger market participants.

Is BTC Preparing For A Big Move?

Despite BTC trading within the $100,000 – $110,000 range for the better part of the previous month, several analysts posit that the flagship cryptocurrency is preparing for a major move in the coming weeks.

Related Reading

Most analysts are leaning toward a move to the upside. For instance, crypto trader Josh Olszewics remarked that if liquidity holds, then BTC may eye a move toward the $150,000 level.

From a technical standpoint, the outlook is encouraging. Crypto analyst Mister Crypto recently pointed out that BTC is forming a bullish inverse head & shoulders pattern on the 3-day chart.

However, latest on-chain data shows that Bitcoin Network Value to Transactions (NVT) Golden Cross recently moved into an overpriced zone, warranting caution. At press time, BTC trades at $105,940, up 1.1% in the past 24 hours.

Featured image from Unsplash, charts from CryptoQuant and TradingView.com