Bitcoin Trader Sentiment Shifts from 'Sell the Rally' to 'Buy the Dip'

Bitcoin's rally to $80,000 has changed trader sentiment from 'sell the rally' to 'buy the dip', according to Mark Sishka, Global Head of OTC Trading at Blockchain.com.

Sishka appeared on the Crypto Options Unplugged podcast on September 10 and stated that the rally was driven by a major short squeeze. The magnitude of this move has forced traders who were waiting for sub-$60,000 prices to reconsider their stance.

However, Sishka warned that Bitcoin looks 'toppy' near current levels, which could lead to a pullback to $70,000 to $72,000. This would establish a higher low before another attempt at reaching the target of $82,000 to $85,000.

Sishka also mentioned that any short-term flush outs are likely to be bought on the dip. The options market is beginning to reflect this shift, with long-dated skew moving towards flat or slight call premium following Bitcoin's rally.