Bitcoin short-term long and short battle! Breaking news: 54% of traders are shorting BTC on DEX, is a price reversal imminent?

Bitcoin (BTC) today (21st) fell into a tug-of-war between bulls and bears during the Asian session, first dipping to a low of $117,644, followed by a rebound by the bulls to above $117,900. The latest data from the Decentralized Exchange (DEX) shows that 54% of traders on the platform are bullish on Bitcoin. The Long-Short Ratio has dropped to 0.85, a low point indicating that bearish sentiment is dominant, raising concerns about a shift in market sentiment or a potential reversal.

Cryptocurrency analyst Ali Martinez stated in a post on X that 54.03% of accounts are short positions while 45.97% are long positions. This ratio reflects an increased level of caution in the trading community as more investors anticipate a price fall.

According to an update from Bitcoin Magazine, the current market capitalization of Bitcoin is $2.35 trillion, and the 24-hour trading volume has plummeted by 20.13% to $49.21 billion.

(Source: Trading View)

A Long-Short Ratio below 1.0 typically indicates a prevailing bearish sentiment.

Especially when short positions increase sharply, the Bitcoin market may be entering a pressure period—this factor has led to unexpected rebounds in the market multiple times, as short positions are forced to close in a highly volatile market.

The chart shared by Martinez shows that this ratio has been significantly declining over time - indicating that bearish pressure is strengthening. However, this trend does not necessarily mean a deep bear market cycle, but it could be a precursor to a reversal if the market experiences "oversold" conditions.

In this context, market data also shows a mixed trend in corporate investment. While short-term traders are increasing their short positions, many large companies continue to accumulate Bitcoin in hopes of achieving long-term goals.

Strategy led the wave of purchases, acquiring 4,225 Bitcoins, followed by Metaplanet (797 Bitcoins), Sequans (683 Bitcoins), and several small purchases from companies in the UK, Japan, Canada, and China.

A total of 17 companies have announced plans to increase their reserves by more than 44,200 Bitcoins, including Volcon's $500 million strategy and Click Holdings' $100 million Bitcoin-SUI investment fund.

The comparison between short-term speculation trends and long-term accumulation strategies reflects two distinctly different perspectives: one anticipates a short-term dip, while the other bets on the potential for Bitcoin's perpetual growth in the future.