Bitcoin’s recent recovery has reignited bullish sentiment among crypto trading groups, but simultaneously, short positions are increasing on major exchanges like Binance and Bitmex.

This growing divergence is creating a complex landscape for traders, as Bitcoin continues to hover below a crucial technical level.

Historically, Bitcoin trading above its 200-day moving average has been a strong indicator of potential returns. However, when it falls below this key level, sharp corrections often follow.

Currently, Bitcoin has been stuck under its 200-day moving average of $64,000 for over a month. This extended period below the average suggests the potential for a deeper correction, possibly towards Bitcoin’s Realized Price of $31,500.

Further compounding this uncertainty, the Bitcoin Exchange Volume Momentum shows a decline in on-chain activity related to exchanges. This decrease in volume hints at reduced investor interest in Bitcoin, which could further dampen any potential for a strong recovery in the near term.

The TD Sequential indicator on Bitcoin’s 12-hour chart has also flashed a sell signal, indicating that a brief correction might be on the horizon. While this signal may suggest caution for bullish traders, it’s still unclear whether a larger downtrend will follow.

Total Net Inflow Of Bitcoin Spot ETFs Sets At $39 Million 

On the institutional side, the total net inflow of Bitcoin spot ETFs on September 12 was $39.0239 million. Notably, Grayscale’s ETF GBTC saw an outflow of $6.5123 million, while its mini ETF BTC experienced a $5.1771 million inflow. ARKB registered an inflow of $18.3424 million, and Fidelity’s ETF FBTC saw a positive inflow of $11.4651 million, indicating ongoing interest from institutional investors.

Despite the mixed signals, the market remains in a delicate balance as traders weigh the potential for a significant move in either direction.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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