Bitcoin‘s price recently rose to the $88,000 threshold after a prolonged period of stasis and downward pressure witnessed across its entire market dynamics. Since the renewed upside movement, investors have been demonstrating heightened interest in the flagship asset, leading to a surge in long positions.
A Surge In Bitcoin Long Positions
With Bitcoin’s price gaining strength for more upward movements, bullish sentiment seems to have returned to the market. Many investors and traders are choosing to stay positive about BTC’s price dynamics in spite of the potential volatility posed by unfavorable macroeconomic and political conditions.
Alphractal, an advanced investment and on-chain data platform, reported the shift in investors’ sentiment following BTC’s renewed leg-up to key resistance levels. While Bitcoin’s price surged briefly, traders opened long positions at a significant rate.
This notable surge in long positions indicates that investors are increasingly betting and positioning themselves for a price recovery. It also reflects confidence in BTC’s long-term prospects, as the ongoing consolidation phase might soon give way to a strong upside breakout.
According to the platform, Bitcoin has amassed more long holdings in the last seven days since it first broke above the $88,000 mark. However, whether the asset can maintain the current upward trend will depend on crucial support and resistance levels. If Bitcoin’s price falls below $84,000, Alphractal noted that current long positions will be at risk, potentially benefiting those who opened short positions above the $88,000 mark.
BTC’s Trading Activity And Open Interest At Its Highest Point
It is worth noting that BTC also saw its highest trade activity and Open Interest (OI) at the $84,000 level within the same time frame. A few days ago, on-chain expert IT Tech reported that the open interest, which represents the total value of outstanding futures contracts, hit a record high above $32 billion following the recent upswing.
The dramatic rise to new highs comes as BTC’s open interest records a surge of $1.5 billion in a single day, particularly on March 24. A continuation of the rally is likely to lead to FOMO, which will trigger a parabolic move. However, the expert outlined a possible steep decline when overly leveraged positions are eliminated once the bulls lose control of the market.
While the open interest rose, the funding rates, which represent the expense of holding leveraged positions, remained close to neutral. This shows that neither bear nor bull traders had complete control over the market.
At the time of writing, Bitcoin’s price had fallen by about 0.15% in the last 24 hours, trading at $87,521. Traders are exhibiting a bearish sentiment, as indicated by the over 7% drop in trading volume in the past day.
