Bitcoin Enters Critical Disbelief Phase: Short Bias Dominates Despite Recovery Signals

Market psychology flips bearish as traders miss the rebound clues.

The Contrarian's Dilemma

While technical indicators flash green, the herd keeps betting red. Short positions pile up at levels that should trigger bullish momentum. Classic disbelief phase behavior—where fear overrides fundamentals.

Recovery Signs Being Ignored

Institutional accumulation patterns suggest smart money positioning for the next leg up. On-chain metrics show holder consolidation at current ranges. Yet retail traders keep chasing shorts like they're getting paid in monopoly money.

Wall Street's Favorite Game

Meanwhile, traditional finance veterans quietly add exposure while publicly talking down the market. Because nothing says 'sophisticated investing' like telling the plebs to sell while you're buying the dip.

Key Takeaways

What fueled Fetch.AI’s 15% price surge?

Binance traders injected liquidity and opened long positions, with a 40% market dominance in FET Futures.

What challenges threaten FET’s recovery?

The $0.34–$0.39 resistance zone remains critical; failure to break it could send FET back toward $0.11, despite bullish RSI and MACD signals.

Artificial Superintelligence Alliance’s [FET] 15% price surge has taken investors by surprise.

The asset had previously suffered an extended 81% decline over the past two weeks, worsened by Ocean Protocol’s exit from the tripartite partnership with SingularityNET.

While Optimism around FET is gradually rising, several technical threats remain that could weigh on its price movement in the short term.

Binance investors fuel FET’s rally

Despite the overall negative sentiment in the market, Binance traders have been pivotal in driving FET’s recent momentum.

Latest data shows that FET’s Taker Buy-Sell Ratio stands at 1.09, indicating that more perpetual investors are taking long positions.

This bullish tilt is largely driven by Binance traders, who currently hold the largest share of perpetual trading volume, Open Interest, and trade count.

Source: CoinGlass

Binance’s Taker Buy Ratio sits at 1.7, with its Open Interest representing 40% of the total market, valued at $79 million.

This dominance implies that Binance traders’ bullish positioning could strongly influence FET’s short-term price action, supporting the likelihood of a continued rally.

Technical levels still pose a threat

Chart analysis suggests that the current bullish sentiment remains fragile unless FET breaks through the critical supply zone between $0.34 and $0.39.

Although price momentum has tilted upward over the past day, failure to breach this resistance level could send FET lower.

Notably, the supply zone isn’t the only catalyst that could trigger a decline. If selling pressure emerges before FET tests this zone, the asset could drop to its 2025 low of $0.11.

Source: TradingView

Technical indicators, however, point to a possible short-term bullish scenario.

The Relative Strength Index (RSI) remained below 30, placing FET in oversold territory and suggesting a potential rebound, though the timing remained uncertain.

Similarly, the Moving Average Convergence Divergence (MACD) turned upward but still sat in negative territory, meaning sentiment could shift again—warranting caution among investors.

Spot market adds to bullish pressure

Spot investors are increasingly contributing to the growing bullish narrative.

CoinGlass Spot Exchange NetFlow data showed that investors moved about $1.27 million worth of FET into private portfolios, signaling their anticipation of further price gains.

Source: CoinGlass

This accumulation followed a Sunday sell-off of roughly $432,000 worth of FET, suggesting renewed confidence in the asset’s upside potential.

Overall, if bullish indicators continue to strengthen and the supply zone is breached, FET could see a sustained MOVE toward new price levels in the coming sessions.