Bitcoin's Positions Turning Bearish: Will the Rally Continue?

As the meeting of the OMC approaches, Bitcoin (BTC) is following a course close to the $23,000 band. The future pricing in the futures market is drawing attention.

There are now only a few hours left until the next interest rate decision by the Federal Reserve (FED) will be announced on February 1. So far, spot markets have priced in that the FED will complete its current tightening cycle with a "soft landing". The expectation for a 25 basis point increase for tomorrow prevails in the markets. As a result of these expectations, BTC is following a flat course close to the $23,000 band.

On-chain data analysts have drawn attention to the increase in open position levels seen among Bitcoin investors. Ahead of the FOMC, the weight of short sales positions is shown in the price expectations of BTC investors. An accumulation of excessive short positions may bring along opposite movements. However, CryptoQuant analyst CryptoOnchain claims that a decline is imminent for the leading cryptocurrency:

Looking at the futures market data, the sentiments of investors are revealed. The data shows an increase in open positions. However, when looking at the buy-sell ratio, it can be seen that short positions have increased... This situation indicates the likelihood of a price drop in the coming hours.