The crypto market yet flipped viciously when a strong bullish path was about to be set up. Bitcoin which was on the verge to rise above $40,000 was pulled back close to $38,000 yet again. No doubt the price quickly regained its position above $39,000. But still lags a strong push which may escort the price above $40,000. However, the current drop cannot be still considered as an entry point as the asset still looks pretty sceptical.
The star crypto had displayed decent volatility in the past week. Where-in it managed to surpass $40,000 a couple of times. But each time it fell with huge downside pressure. With the coiling downward pressure, traders now are more interested to short the BTC price instead of long. According to some reports, the large traders now bet on a price plunge rather than coiling up.
According to the data collected by the analytic platform, a notable number of the traders have borrowed nearly 1500BTC from Bitfinex. Interestingly, the traders wish to enter a short position. The exchange has lent out nearly 3063BTC, among which the short positions which are non-hedging carry a large. If in case the rounds of the short positions come to be true, then the BTC price may slide down below $35000.
However, until and unless the BTC price closes the day’s trade above $30,000 it is a bullish sign for the asset. Moreover, the possibilities of plunging below $30,000 also reduce notable and healthy volatility in between $33,000 to $44,000 is considered as a healthy accumulation.
And hence, the analyst believes that the traders who bought in between $50,000 to $69,000 may sell at a loss within a healthy accumulation. Therefore, the analyst may point out a continued trend where-in the top-heavy distribution becomes the middle heavy distribution. Also, every new hit of support makes that support weaker and weaker. And hence another couple of hits at the support levels in between $30K to $35K would make these levels brittle. Further, a breakdown of the Bitcoin(BTC) price may be imminent.
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