- As Bitcoin price declined, traders opened long positions and moved to buy, according to reports.
- The Bitcoin long-short ratio reached an all-time high on the Kraken platform, with Open Interest also reaching peak levels.
- Theodorous warned of potential short-term long squeeze possibility while noting positive sentiment towards Bitcoin in the market.
- The article was summarized using an artificial intelligence-based language model.
- Due to the nature of the technology, key content in the text may be excluded or different from the facts.
As Bitcoin (BTC) declines, analysis shows an increase in traders opening long positions.
On the 25th (local time), Alexia Theodorous, Kraken's derivatives specialist, said in an interview with CoinDesk, "As Bitcoin falls below $88,000, traders are moving to buy Bitcoin," adding that "there has been a surge in traders taking long positions in Bitcoin perpetual futures on Kraken."
According to Theodorous, the Bitcoin long-short ratio on Kraken has reached an all-time high (0.8). Open Interest (OI) has also reached a 4-week high. She explained, "Traders are expecting a Bitcoin rebound and conducting buy-the-dip purchases," adding that "this shows positive sentiment towards Bitcoin spreading in the market."
However, she also indicated the possibility of further Bitcoin decline. Theodorous stated, "While the BTC long-short ratio has surged, the forced liquidation volume remains within the settlement range," suggesting that "this could mean excessive leverage ratios." She added that "short-term additional declines in the form of a long squeeze could occur."
Meanwhile, CryptoQuant previously announced through X that whales are accumulating Bitcoin, stating that "26,430 BTC has just flowed into addresses associated with OTC trades and long-term storage."
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