70% of Binance Traders Are Long on Bitcoin and Buying the Dip

Binance traders are bullish about the near future of Bitcoin (BTC) and buying in heavily. According to recent data, nearly 70% of the major exchange’s professional traders are long on Bitcoin, indicating that they expect the world’s largest cryptocurrency by market capitalization to spike sometime soon.

Current CoinGecko data shows that Bitcoin is trading at $61,870 after falling 4.3% in the last 24 hours and 9.3% in 7 days. Bitcoin is also 16% lower than its all-time high (ATH) of $73,737. The asset’s recent performance has been underwhelming, and attention has been shifted to established and upcoming altcoins. There are now several Binance future listings that investors are considering for a chance to earn significantly while they wait for BTC’s rise. These alternative options offer lower gas fees, faster transactions, and attractive staking rewards to buyers willing to hold their deposits for long periods. 

Traders Bullish on Bitcoin’s Rise Despite Neutral Analysis

Binance’s orders distribution shows that while 30.7% of these accounts had short positions, a considerable 69.3% were in long positions. The ratio of long to short positions indicates that most traders believe Bitcoin’s current plunge is temporary.

Bitcoin’s price recently fell to the 100-day exponential moving average (EMA), creating support at $63,000. Bitcoin history shows that the 100 EMA has been an important support level for Bitcoin during a bear market. The asset’s current price has now fallen below this support, suggesting a further plunge. However, if Bitcoin maintains price swings around the support level for long enough, the asset may be ready for a potential upswing soon.

On-chain data shows that Bitcoin is declining and is currently testing its 200-day moving average since it has broken through the 100 EMA. In addition, Bitcoin’s relative strength index (RSI) is below 50, indicating a neutral position with potential for bearish movement.

Despite the plunge, traders may be considering Bitcoin’s long-term potential. According to data from MarketWatch, Bitcoin has climbed more than 47% year to date (YTD) and an impressive 113% in the last year. In addition, historical data shows that Bitcoin usually regains momentum after hitting crucial support levels. This adds to the bullish sentiment from traders long on the king coin.

Bitcoin’s Chance of a Spike

Several reasons suggest the possibility of Bitcoin’s rebound this year. Since the United States Securities and Exchange Commission (SEC) approved spot Bitcoin exchange-traded funds (ETFs), the sector has received renewed attention. With several billion dollars currently invested in these Bitcoin products, institutions are more willing to enter and are already well invested. 

For instance, two major hedge funds with over $82 billion in assets under management (AUM), Millennium Management, and Schonfeld, are heavily invested in Bitcoin ETFs and hold nearly $2.5 billion in the products. In addition to hedge funds, several other institutions, including Trusts, Market Makers, Family Offices, and Pension Funds, are well invested. Recently, the Jersey City Mayor announced that the city’s fund is updating paperwork with the SEC as it prepares to invest in ETFs. Months before the announcement, Wisconsin’s pension fund invested more than $160 million, with over $99 million in Blackrock’s IBIT ETF, and around $64 million in Grayscale’s GBTC.

In addition to the institutional interest, Bitcoin is also expected to benefit from its halving event, which took place in April. The event, which cuts miner block rewards by 50%, is a deflationary measure for the blockchain and is usually bullish. However, the positive effects of a Bitcoin halving usually take a while to manifest. Traders long on Bitcoin are likely anticipating this manifestation and are buying the dip in preparation.

The attention to Bitcoin has also spread to government quarters, with Wyoming Senator Cynthia Lummis proposing that the US invests heavily in Bitcoin. According to the Senator, Bitcoin is the best way to ensure the dollar maintains its position as the world’s reserve currency. Lummis’ draft bill includes provisions for the US to buy 200,000 Bitcoin annually for five years. According to her “Bitcoin Purchase Program,” a part of the “Bitcoin Act of 2024,” the government will leave the acquired Bitcoin untouched for 20 years and may only sell it to pay federal debt. After that, sales are capped to 10% within any two years. 

Bitcoin in Politics

Another reason for Bitcoin’s bullishness is the asset’s popularity in politics as the US elections approach. Former president and Republican candidate Donald Trump has won support from the crypto community because of his bold crypto promises. Trump has declared his support for crypto, proposed encouraging regulations, and promised to change the SEC’s leadership. He also has a personal interest in the industry and has issued multiple non-fungible token (NFT) collections.

Owing to Bitcoin’s recent political popularity, Bitwise Chief Investment Officer Matt Hougan believes “we’re not bullish enough.” In a recent note, Hougan highlighted Trump’s plans for a strategic national bitcoin stockpile, Lummis’ bill, and independent candidate Robert F. Kennedy Jr.'s proposal to buy 4 million BTC. For these reasons, Hougan believes it is time to “rethink what’s possible for Bitcoin.” 

Bitcoin’s increased popularity could be advantageous for price action which benefits traders, and also boost adoption across multiple sectors, with more acceptance seen in politics, finance, healthcare, and entertainment through crypto gambling.