What’s making Bitcoin traders excited today? All about BTC’s $64K rebound

• Traders reduced their amount of leverage as BTC prices stabilized.
• Holders remained unprofitable despite the price appreciation.

Bitcoin [BTC] has inspired hope amidst holders and traders alike as its price reclaimed the $64,000 levels. Over the last 24 hours, BTC has remained close to this level and has not fluctuated much.

Declining leverage

This stability is accompanied by good news from the derivatives market, which is exhibiting signs of health.

One such indicator is the significant reset in Funding Rates that occurred after the recent price drop. This reset suggests that leverage in the market may be decreasing.

Adding to the positive sentiment is the fact that Open Interest as a percentage of market cap has fallen below 2%.

This is the first time this has happened since February, and it is another indicator of decreased leverage in the market.

Lower leverage can be seen as a sign of reduced risk, which is generally positive for the long-term health of BTC.

Source: Glassnode

However, traders skewed more towards the skeptical side when it came to BTC. Coinglass’ data indicated that the percentage of short positions taken against BTC were much higher than the long positions being taken.

Source: coinglass

How are holders doing?

At press time, BTC was trading at 64,232.57, with its price having risen by 1.37% in the last 24 hours. However, the volume at which BTC was trading at had decreased by 11.18% during this period.

Despite BTC’s recent surge in price, holders remained unprofitable.

AMBCrypto’s examination of Santiment’s data revealed that the MVRV ratio of BTC had fallen, implying that most holders were waiting for their holdings to turn green.

This may be positive for BTC in the short term as these addresses are likely to hold on to their BTC till the prices move past a certain price point.

However, what would challenge BTC’s rally would be the declining Long/Short difference.

A waning Long/Short difference shows that the number of long term holders were declining and were getting outnumbered by short term holders.

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It is expected of these short term holders to display what’s known as “paper hands” which means the tendency to sell holdings amidst market volatility and not showing belief in their holdings.

The perspective and conviction of these short-term holders will play a huge role in determining the price movement of BTC going forward.

Source: Santiment