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Bitcoin traders are unmoved by BTC’s fall below 27k – Why?

2min Read

The long/short ratio suggests that traders’ sentiment is largely bullish, with the average expectation being a notable recovery for BTC in the short term.

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  • Long positions outweighed shorts despite BTC’s fall below $27,000.
  • An increase in buying pressure alongside increasing volatility could be vital to the recovery.

Bitcoin’s [BTC] drop to $26,794 is normally supposed to spread fear about another decline since the king coin was able to hold on to $27,000 for a number of days. However, traders are unperturbed by the decline and are doubling down on long BTC positions.

Read Bitcoin’s [BTC] Price Prediction 2023-2024

Unmoved by the decline

Pseudonymous analyst and trader Ali Charts made mention of this unprecedented circumstance on 11 October. Using the Bitcoin long/short ratio indicator, Ali revealed that 65.33% of the positions in the market were long.

This disparity ensured that the long/short ratio jumped to 1.88. Typically, a value below 1 for the indicator implies that there are more short positions.

So, the value of 1.88 suggests that traders’ sentiment is largely bullish, with the average expectation being a notable recovery for BTC in the short term.

But on the same day, BTC long liquidations were higher than shorts. According to Coinglass, $14.57 million in long positions were wiped out from the market on 11 October.

At the time of writing, shorts were feeling the heat. So, it is likely that traders did not expect the recovery to be quick, and could probably take some days.

Bitcoin liquidations

Source: Coinglass

Buyers have the edge

Meanwhile, the four-hour BTC/USD chart showed that there was a clear contest between bulls and bears regarding control of the market. However, the Accumulation/Distribution (A/D) line grew to 3.275 million.

The A/D gauges the demand and supply of an asset. In general, a rising A/D confirms a price uptick while a falling A/D denotes a downtrend in value. The increase in the indicator suggests buying pressure for BTC. 

Should the A/D increase, there is a chance Bitcoin may exchange hands above $27,000 in the coming days. This was also reinforced by the Bollinger Bands (BB).

At the time of writing, the BB had expanded. Thus, there’s a chance of significant price fluctuations. But it would only be in the upward direction if accumulation continues to outpace distribution.

Bitcoin price action

Source: TradingView

From an on-chain perspective, it also seemed that there was intense accumulation. One metric used to evaluate the possibility is the Bitcoin balance of addresses. This metric is described as the amount Bitcoin holders have in their portfolios.

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According to Santiment, not all holder cohort balances have increased.

However, the balance of addresses holding between 1 to 100,000 coins has been surging of late. If the hike continues, then traders with long positions could be profitable in the end.

Bitcoin balance of addresses


Victor Olanrewaju is a full-time journalist at AMBCrypto. Settled in Lagos, his fascination with blockchain technology and the cryptocurrency market arose out of his love of freedom and everything free. As a Nigerian, Victor understands the impact unfounded financial restrictions have on a population. He sees Bitcoin and cryptos as a way to circumvent these obstacles, as a tool for value creation despite all the setbacks. A graduate in Physics, Victor previously worked as a Senior Marketer at Melange Technologies. Before that, he dealt with crypto-marketers on a regular basis in his capacity as Copywriter at Ventrix Media. At AMBCrypto, Victor’s focus is on assessing the real effectiveness of both on-chain and off-chain developments on a project and its community sentiment.
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