Bitcoin Traders Turn Bearish Following Price Recovery

In an X post, crypto analyst Ali Martinez revealed that Bitcoin traders have turned bearish despite the price recovery above $97,000.

The Bitcoin price has surged past the $97,000 level, sparking optimism among crypto enthusiasts. However, a closer examination of the market sentiment reveals an interesting trend. Despite the price recovery, traders seem to be pessimistic about the current price action.

According to Ali Martinez, a crypto analyst, the percentage of traders on Binance betting on a BTC price increase has decreased from 66.35% to 55.22% in the last 24 hours. This is noteworthy considering the track record of these Binance traders, who are usually right most of the time.

While the majority of traders (55.22%) are still longing BTC, the decline in those betting on a rise suggests that there is a possibility that the recent price recovery is just a relief bounce and not a bullish reversal.

The Bitcoin price has recovered above $97,000 after dropping to below $90,000 two days ago. This recent rally could pave the way for the flagship crypto to reclaim the psychological $100,000 price level.

Crypto analyst Jelle is confident that this could happen soon, as he stated that a price breakout above $97,000 could lead to new highs for Bitcoin. However, there is still a lot of market uncertainty, which could explain why some of these Bitcoin traders are choosing not to bet on a further rally despite the recent price recovery.

Recent macro data have suggested that the Federal Reserve is unlikely to implement as many quantitative easing (QE) policies as compared to last year. This is bearish for the Bitcoin price since investors could become more skeptical about investing in this risk asset.

On the other hand, Donald Trump’s incoming administration provides some optimism for market participants since the US president-elect has promised to create a Strategic Bitcoin Reserve, which would lead to greater adoption of BTC.

Meanwhile, another crypto analyst, Trader Tardigrade, has offered a bullish outlook on the Bitcoin price. In a recent analysis, Tardigrade highlighted a shift in the market structure from a downtrend to an uptrend.

According to the analyst, when Bitcoin was in a downtrend, characterized by lower highs and lower lows, it encountered an equal high, signaling a "change of character." Now, BTC has broken through the resistance to form a higher high.

As per Tardigrade's analysis, if BTC maintains a higher low at the support/resistance flip level of $96,000, it could kick-start the bull run again. The analyst's chart suggests that the flagship crypto could go on to reclaim $100,000 and then rally to new highs.

At the time of writing, the Bitcoin price is trading at around $97,300, up over 2% in the last 24 hours, according to data from CoinMarketCap.