The cryptocurrency market’s recent bout of sideways trading was met with a bullish resolution overnight when bulls were able to propel Bitcoin (BTC) through the heavy resistance it was previously facing at $8,900, with its break above this level allowing most other cryptos to also climb higher.
Traders are now widely anticipating the cryptocurrency to see further upwards momentum, as data from Binance Futures shows that the overwhelming majority of top users on the platform are long on BTC.
Despite this, analysts are cautious about getting too excited following the recent BTC rally, as the resistance it faces around $9,500 could prove to be insurmountable and provide an ideal shorting opportunity.
Top Traders on Binance Go Long on Bitcoin Following Overnight Rally
For the past several days, Bitcoin had previously been caught within a bout of sideways trading between roughly $8,400 and $8,900, with bulls and bears reaching an impasse once the cryptocurrency stabilized at roughly $8,700.
Overnight, the cryptocurrency was able to rally past the upper boundary of this trading range, climbing as high as $9,200 before finding some significant resistance that halted this uptrend.
In the near-term, it does appear that the benchmark crypto has now entered yet another consolidation phase at $9,100, which signals that this recent rally was not enough to fully invalidate the bearishness caused by its recent downtrend.
Despite this, top traders on Binance – as defined as the top 20% of traders by margin balance – are overwhelmingly long on BTC.
“Binance Futures traders are currently Long BTC/USDT overall on the daily time frame. ‘Top traders’ are defined as the top 20% of traders by margin balance,” the exchange noted in a recent tweet.
Bulls Beware: BTC Has Yet to Test Key Resistance
Although Bitcoin was able to break above its key short-term resistance around $8,900, it is important to note that it has yet to test its next key resistance at $9,500.
Teddy, a popular cryptocurrency analyst on Twitter, explained that he would like to short this region should Bitcoin climb that far.
“BTC: As per plan I’ve closed my long at 9150, as price reached my resistance of interest. No interest to short, just buy lower if we were to retrace down to the support of channel up/rising wedge. Would like to short 95xx tho,” he said.
As per plan I've closed my long at 9150, as price reached my resistance of interest.
No interest to short, just buy lower if we were to retrace down to the support of channel up/rising wedge
Would like to short 95xx tho 🥰 pic.twitter.com/gNUagpxJzI
— TEDDY (₿) (@TeddyCleps) March 5, 2020
If BTC’s recent rebound stalls and the crypto fails to stabilize above $9,000, it is highly probable that its recent downtrend will extend significantly further.