Long traders took most of the damage during the latest selloff. More than $30 million in bullish positions were liquidated, compared with about $17 million in short liquidations.
Even so, trader positioning still leans bullish on major exchanges, including Binance and OKX. That setup has raised doubts, as sharp bullish positioning can increase downside risk during weak markets.
Santiment also warned that has reached its most bullish level of 2026. The platform said Bitcoin saw 2.23 bullish comments for every bearish comment on social media.
“The previous two biggest positive-ratio days of the year preceded short-term price pullbacks,” Santiment said. It added that the current optimism contrasts with weak spot Bitcoin ETF flows.
Spot Bitcoin ETFs recorded their tenth straight trading day of outflows on Friday. Total net redemptions have crossed $2.97 billion since May 15, according to the report.
Broader market conditions also add pressure. US PCE inflation climbed to 3.8% year over year in April, while rate hike expectations increased. Additionally, tensions between the US and Iran have hurt risk sentiment across global markets and crypto assets.
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