Bitcoin News Today: "Bitcoin's Bleeding Shorts: Could Bearish Overload Spark a Rebound?"

Bitcoin's perpetual futures long-short ratios continue to draw attention as key indicators of market sentiment amid recent price fluctuations. The Binance Taker Buy-Sell Ratio, a widely followed metric among derivatives traders, has dropped to its lowest level in this market cycle, hitting 0.95. This shift indicates a bearish dominance in the order book, with sell orders outweighing buy orders. Analysts like Darkfost argue that such contrarian signals often precede strong rebounds, as extreme bearish positioning can lead to short squeezes or renewed buying interest. The ratio’s current level may therefore suggest an overbought short position, potentially setting the stage for a reversal if buyers step in decisively in the coming days [1].

The recent price action in Bitcoin reflects the challenges of maintaining momentum after hitting a new all-time high above $124,000. Following a sharp pullback, Bitcoin now trades near $113,467, testing critical support levels close to the 100-day moving average. This phase of consolidation has seen the 50-day simple moving average flip into a resistance zone, reinforcing bearish control in the short term. Market participants are closely watching whether this support can hold, as a break below $111,140 could accelerate further downward pressure, while a successful defense could provide a foundation for a new rally [1].

On the broader market front, Bitcoin’s apparent demand has cooled, with on-chain data from CryptoQuant showing a significant drop in apparent demand from 174,000 BTC in July to just 59,000 BTC as of the latest report. ETF inflows have also slowed to their weakest since April, pointing to a “bullish cooldown” phase. This cooling has coincided with a shift in capital toward ether (ETH), as reflected in the rising ETH/BTC ratio. OKX Singapore’s CEO Gracie Lin noted this trend, attributing it to macroeconomic catalysts such as the upcoming Jackson Hole symposium and U.S. inflation data [2].

The market’s behavior underscores a shift toward more selective trading strategies rather than broad altcoin rallies. Institutional and retail investors alike are showing a preference for specific assets with strong fundamentals or macroeconomic tailwinds. This trend is evident as strategic plays like BNB hit all-time highs and platforms such as Hyperliquid demonstrate operational strength. Enflux analysts highlighted that the altcoin market is no longer seen as a uniform beta trade, with investors increasingly favoring resilience over speculative bets [2].

In the coming weeks, Bitcoin’s ability to stabilize near its key support levels and generate renewed bullish momentum will be crucial. A successful defense of the $113K–$111K range could open the door for a fresh upward leg, particularly if macro sentiment improves or on-chain accumulation picks up. However, any failure to hold could signal the beginning of a deeper correction phase. Traders are advised to remain cautious and monitor both on-chain metrics and macroeconomic signals for potential turning points [1].

Source:

[1] Bitcoin Binance Taker Buy-Sell Ratio Hits Cycle Low (https://www.mitrade.com/insights/news/live-news/article-3-1060035-20250822)

[2] Asia Morning Briefing: BTC Demand Cools While 'Crypto Capital' Gets Selective (https://www.coindesk.com/markets/2025/08/21/asia-morning-briefing-btc-demand-cools-while-crypto-capital-is-getting-more-selective-okx-s-gracie-lin-warns)