Market sentiment switches in favor of the bulls, leading to speculation that the bottom is in.is currently in a cycle bottom? This idea has been floating around lately and could be one of the reasons why the bulls are regaining momentum lately.Bitcoin regained bullish momentum after a downcast start this week. It slid by over 2% on 11 September, Monday, but followed up with a 3.87% rally in the last 24 hours at press time.
Bitcoin’s crash on 11 September was noteworthy for two main reasons. The price previously struggled to push to lower price levels and once it did, a massive bullish pike followed. This suggested thatFurthermore, the recent dip sent the price for a retest of its June lows . Hence, the accumulation at the $24,900 support range. The longs versus shorts ratio also improved in favor of the bulls.
This metric on coinglass revealed that the ratio has been rising from 0.81 on 8 September to 1.02 on 12 September. The same metric showed that shorts dropped slightly during the same period, while longs grew slightly higher.revealed that outflows have prevailed for the last four weeks. For example, the Purpose Bitcoin ETF holding metric particularly showed a consistent downside.
Meanwhile, outflows from top addresses recently dropped to monthly lows. However, addresses holding at least 1,000 commenced accumulation on 11 September despite the downside.We also explored the current state of demand in the derivatives market. Open interest was up slightly at the time of writing, while the estimated leverage ratio dropped slightly.
This could signal that some traders could be exciting their short positions especially now that the sentiment was in favor of the bulls. On the other hand, the market is still cautious hence the low rate of leveraged longs.