Bitcoin is holding steady at $104,500, continuing its upward trajectory and closing in on another all-time high (ATH). However, a surprising trend has emerged—despite Bitcoin’s resilience, nearly 60% of traders on Binance are taking short positions against it. This growing bearish sentiment is juxtaposed with rising short liquidations and bullish technical indicators, suggesting that Bitcoin’s price may continue its climb.

Traders Are Betting Against Bitcoin

Despite Bitcoin’s strong performance, the long/short ratio on Binance shows that a significant portion of the market remains skeptical. According to data from Coinglass, around 60% of traders are holding short positions against Bitcoin. This reflects cautious sentiment, with many traders hedging against potential price corrections or concerns that Bitcoin may be overbought.

Interestingly, this bearish bias is developing while Bitcoin is trading above key moving averages, including the 50-day and 200-day moving averages. These technical signals suggest that bulls are in control, and Bitcoin’s price could push higher if it successfully breaches resistance at $105,000.

Short Liquidations Are Increasing

One of the most striking developments in recent days has been the increase in short liquidations. Over the past two trading sessions, short positions have been liquidated at a higher rate than long positions, with short liquidations reaching $68.78 million, compared to just $13 million for long positions.

This spike in short liquidations indicates that bearish traders, who anticipated a pullback, have been caught off guard by Bitcoin’s ability to hold strong above key psychological levels. As the price continues to rise, more short positions could be forced to liquidate, further fueling Bitcoin’s upward momentum.

Bullish Technical Indicators

Bitcoin’s technical indicators are reinforcing the bullish outlook. The Relative Strength Index (RSI) is currently at 67.65, which indicates that Bitcoin is nearing overbought territory. However, RSI levels near 70 often signal short-term corrections, and Bitcoin’s ability to maintain current price levels could invalidate immediate bearish concerns.

Bitcoin’s price action is also well-supported by its Golden Cross, a pattern that occurs when the 50-day moving average crosses above the 200-day moving average. This is seen as a bullish signal and has historically been followed by sustained upward momentum.

Resistance and Support Levels to Watch

Traders will closely monitor Bitcoin’s performance around key resistance and support levels. The next major resistance lies at $105,000, and a close above this level could open the door to testing $110,000. On the other hand, immediate support is found around $100,000, providing a safety net for Bitcoin in case of a price pullback.

Can Bears Withstand Bitcoin’s Momentum?

The increasing number of short positions, combined with rising short liquidations, indicates that bears may be on the losing side of this trade. With Bitcoin holding above critical support levels and technical indicators pointing to further upside potential, the market could be primed for additional gains if short traders are forced to capitulate.

The divergence between sentiment and price action suggests that Bitcoin’s bulls remain firmly in control, and any continued price increases could put even more pressure on bearish traders. Investors should keep an eye on the resistance at $105,000 and support at $100,000 to gauge Bitcoin’s next move.