Decoding Bitcoin’s September trap: Is drop to $52K looming for BTC?

Are Bitcoin investors falling for the market’s “September Trap”?

In terms of positioning, traders are becoming more long biased on Bitcoin, implying they expect a bullish move that the technical formation has yet to confirm.

Because from the technical standpoint, BTC has been trading below $80k for more than two weeks, which keeps the risk/reward equation in check.

However, the setup on the chart below implies that the bulls are willing to risk a lot for a big reward.

According to CoinGlass data, Bitcoin’s funding rates are positive, and the long/short ratio has jumped to 1.08 from below 1 over the past week. Moreover, it is the highest ratio of long positions since the mid-August cycle.

In essence, the traders are expecting a breakout above Bitcoin’s current resistance.

However, it must be noted that not everyone is optimistic.

An analyst on X posted asking for a BTC short, claiming that BTC could reach the $52k level and then turn around and head back up. This divergence in viewpoints can only contribute to BTC price’s volatility and put more pressure on its current consolidation.

In this context, it becomes critical to take a closer look at the on-chain situation. And so far, it’s suggested that there is even a clear bias forming.