Bitcoin Bears Are Taking Fresh Market Positions, But Are They Safe?

Bitcoin's price has recovered after a sharp downward swing, returning above $107,000. Despite this recovery, there is a growing sentiment in the market that is worth noting. According to cryptocurrency analytics firm Alphractal, short positions have surged over the past 7 days. This is based on the Liquidity Zone (7 Days) indicator, which measures price movement, Net Delta of open interest, and distribution of open interest at various price levels. The Net Delta measures the difference between long and short open positions, with a negative reading indicating more short positions. The current negative Net Delta suggests that short traders dominate the market. However, this does not necessarily mean a sell-off is imminent, as the high negative Net Delta was recorded during a stable market. If the Bitcoin price overcomes the sell resistance, a short squeeze could occur, pushing the price up and liquidating short positions. The market is uncertain, and those with bearish sentiment should be cautious about their next move. As of now, Bitcoin is stuck in a choppy range, valued at $107,309, with a 0.2% growth in the past 24 hours and a 5.2% rise in the past 7 days.