Bitcoin Price Recovers to $116,000 Amid Analysts’ Caution on Market Sentiment
Bitcoin (BTC) is attempting to recover from a recent decline, trading above $116,000 after hitting lows around $112,000. Despite this rebound, analysts warn of potential corrections due to underlying market sentiment.
Sentiment Indicators on Binance
- Long positions on Binance have surged as BTC's price increased.
- This spike in long positions historically precedes price corrections.
- A meaningful correction may occur if BTC falls below $110,000, providing better re-entry points for buyers.
Leverage Data Signals Mixed Recovery Prospects
- Binance’s leverage ratio is declining, indicating reduced speculative behavior and potentially more stable price action.
- The simultaneous decrease in both leverage and price suggests weak demand from spot buyers.
- Concerns about the strength of Bitcoin’s recovery are raised due to insufficient buying support.
