The post Bitcoin’s Price Rebound Hides a Growing Market Risk appeared on BitcoinEthereumNews.com.

After facing challenges last week, Bitcoin (BTC) has regained strength, igniting optimism among derivatives traders. Bullish positioning has increased sharply, pushing key indicators to notable highs. However, predominantly negative exchange-traded fund (ETF) flows and weakening institutional demand are fueling concerns over elevated long-liquidation risk. Sponsored Sponsored Bitcoin Derivatives Turn Bullish Despite Soft Spot Demand Bitcoin opened 2026 with strong upside momentum, gaining more than 7% in the first five days of January. Nonetheless, a correction briefly pushed the asset below $90,000 late last week. Since Sunday, Bitcoin has stabilized and returned to positive territory, trading mostly in the green amid relatively subdued volatility. At the time of writing, Bitcoin traded at $91,299, down 0.81% over the past 24 hours. Bitcoin Price Performance. Source: BeInCrypto Markets The rebound has sparked bullish sentiment in the derivatives market. Data from CryptoQuant revealed that the Taker Buy/Sell Ratio climbed to 1.249 today. This is the highest level since early 2019. For context, the Taker Buy/Sell Ratio measures the balance between aggressive buying and selling in the derivatives market by comparing the volume of buy and sell orders executed at market price. A ratio above 1 indicates that bullish sentiment is dominating. Additionally, a ratio below 1 signals stronger bearish sentiment. Bitcoin Taker Buy/Sell Ratio. Source: CryptoQuant Sponsored Sponsored The surge in aggressive buying coincides with unusually elevated long exposure among top traders. Joao Wedson, founder of Alphractal, noted that long positions held by large traders have reached their highest level on record. Such concentration of leverage on one side of the market can increase the likelihood of sharp, liquidation-driven price moves. “This partially explains the liquidity hunts carried out by exchanges, driven by high-capital traders. Exchanges don’t really care about retail traders — what they want are wealthy traders positioned in the wrong direction,”…

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Filed under: News - @ January 13, 2026 8:24 am