Top traders go long after Bitcoin price rallies to key $11.5K resistance

On Oct. 7 Cointelegraph reported that top crypto traders had kept a bearish stance since mid-September and at the time the Bitcoin long-to-short ratio had reached its lowest level in 10 weeks.

The most recent two-weeks saw Bitcoin price trade in the $10,400-$10,900 range and BTC futures open interest increased by $300 million.

Regardless of the reason behind the most recent price movement, top traders rushed to cover their short positions.

Even though each futures market is balanced between buyers and sellers, top traders' positions can differ from a broader client base.

During the following 24 hours, these traders not only closed their shorts, but also reverted to a 25% net long position.

Binance data depicts a similar situation, as its top traders' long-to-short ratio spiked from 9% to 23% net long during the same period.

The above data indicate that top traders were net short ahead of the recent BTC price surge.

Instead of betting on a typical "Bart Simpson pattern", top traders changed their stance and are now leaning bullish, supporting the thesis of a bull run to $14,000.

In the future, traders might consider shifting their positions according to data, instead of speculating on how price movements may or may not trigger trend changes.

If top traders are becoming bullish, then this is typically a signal that the trend is strengthening in that direction.