Bitcoin reached a new all-time high above $110,000, yet traders are increasingly shorting the asset, reflecting skepticism towards bullish trends. The Bitcoin long/short ratio is at its lowest since September 2022, indicating a prevalence of short positions. This trend began on April 21, following a breakout above $85,000, as traders anticipated a double top formation. Despite overcoming key resistance levels at $97,000 and $105,000, shorting activity has intensified, evidenced by a 74% surge in trading volume and a 17% rise in open interest, signaling leveraged trading. While these short positions might suggest a bearish market, they could create opportunities for bullish traders to target and push prices higher. The dynamics of trading, including strategic shorting at resistance levels, allow traders to capitalize on temporal price dips, enhancing profitability. The sustainability of this rally remains uncertain, dependent on further price movements around key resistance levels above $111,000, which could trigger more short squeezes.

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