Binance Futures Traders Long BTC and Altcoins, Even as Bitcoin Price Falls

The majority of top traders on Binance Futures are longing Bitcoin, Ether, and 8 other cryptocurrencies.

The data indicates the majority of traders on Binance Futures are still convinced Bitcoin could see a resumption of uptrend in the short to medium-term.

Reason why traders are bullish on Bitcoin's short-term price actionFrom March to April, the price trend of Bitcoin closely followed the movement of the U.S. stock market.

Since reversing course in late March the U.S. stock market has chased a V-shaped recovery and crypto investors' hopes for a Bitcoin rally have also grown.

According to cryptocurrency trader Scott Melker, the declining volume of Bitcoin amid a pullback suggests the market is consolidating, not entering a bear cycle.

Volume has been decreasing with price since Bitcoin topped at $10,000.

Market data shows Bitcoin is likely seeing a healthy consolidation rather than a one-sided correction, which is probably fueling the positive sentiment around cryptocurrencies on Binance Futures.

A third catalyst that could be pushing the majority of the market to long BTC at the current price is its price trend in the past month.

After achieving a local peak above $10,000, BTC declined by around 13%. Traders may see a 13% pullback as a viable dip to re-enter the market.

Some traders are possibly longing altcoins purely based on the reward to risk ratio, as they have a better chance of seeing a recovery at a multi-year low point against BTC than in previous months.