Bitcoin has seen an incredible price surge over the past two weeks. This momentum, which surprised many, caused Bitcoin to break above psychological price level of $65,000 Again. According to price data, on September 6, Bitcoin was trading at just $52,820.

Its recent rebound to $66,300 shows that the cryptocurrency king has made a significant rebound of 25.5% in two weeks. According to Coin datathat means Bitcoin recorded the biggest gains in September since 2013.

However, despite this impressive growth, a significant number of traders still bet on BTC. This ongoing trend has set the stage for a potential brief position that could send the coin’s price skyrocketing to recent all-time highs in October. Let’s take a closer look at how this happens and what might happen in the future.

Short positions dominate the exchange

According to cryptocurrency analyst Ali Martinez, who shared his observations on social media platform X, a surprising 57.77% of Binance users with open positions are shorting Bitcoin. This means that many traders are betting that the price of Bitcoin will fall even though it remains high.

57.77% of @binance users with open positions brief #Bitcoin! pic.twitter.com/bWQ4d5n6MJ

— Ali (@ali_charts) September 27, 2024

However, considering institutional and whaling inflow in Bitcoin, especially through Spot Bitcoin ETFsBitcoin is still largely able to maintain its uptrend in the coming week. The combination of such inflows and significant brief volume creates the potential for brief positions to tighten in early October.

As September comes to an end, many traders turn their attention to October, which is historically an up month for BTC (Uptober). Bitcoin has often done this performed well in the fourth quarterthat is, when the industry typically sees increased purchasing pressure and an inflow of institutional funds. Such a brief squeeze could push the cryptocurrency’s price even further beyond its previous all-time high of $73,737 and into recent price territory.

Bitcoin: a short-term correction on the horizon?

Although the prospects for BTC is generally bullish, there is also possibility of short-term correction in price in the coming days. The TD Sequential indicator, a popular tool used by traders to identify potential price reversals, showed a sell signal on the 4-hour chart. It was a phenomenon remarked Ali Martinezwhich suggests that Bitcoin may experience a brief pullback before returning to an upward path.

Such a correction would serve as a consolidation phase after two weeks of bullish price action, giving the market time to reset before the next massive move. Following this trend, this could also potentially prompt more traders to go brief, further increasing the potential for more shorting when BTC rebounds.

At the time of writing, Bitcoin is trading at $65,658.

Featured image from CNBC, chart from TradingView