Bitcoin recently fell below critical support at $ 32,000 and in response, retailers saw this as an opportunity to make money. So far they have started short positions, an extremely bearish signal to the market.

When a lot of short positions are stacked in such a short amount of time it can show other investors that the price of BTC will eventually drop lower and therefore lead to panic selling. However, this is not always the case. The fact remains that no one can determine exactly what will happen to the digital asset and therefore all short or long positions are now just bets. More a guess than an actual prediction.

Retailers have repeatedly taken short positions while the market is struggling to recover, according to a Twitter post. And following the historical bottoming process, this also shows that the digital asset is closer to the bottom than ever.

Short order stacking

Retail investors pile their shorts. One analyst wrote that this could lead to a lower lows rather than a reversal.

Retail has finally started short selling.

And of course when we are with support.$ BTC pic.twitter.com/wkCYJ5Sj62

– Byzantine General (@ByzGeneral) July 16, 2021

“Retailers have finally started short selling. And of course Bitcoin is supported. “

The indicators still suggest that Bitcoin could break the $ 30,000 stronghold it has held for weeks. However, there is much speculation that at this point institutional investors will pour in and the bulls will return.

Bitcoin has fallen to nearly $ 31,000 in the past 24 hours and has rebounded slightly after that decline. But that’s not enough to renew confidence that a rally is more likely than another low.

BTC / USDT 15-minute frame | Source: TradingView

If the digital asset exceeds $ 30,000 before the week ends, it will fall into bear territory. Even so, some analysts believe the move will trigger a rally later in the week.

Short sellers expect Bitcoin to break strong support around $ 30,000, but so far it holds. However, there is no telling how the price action will develop at the end of the week.

Bullish sentiment for Bitcoin?

Despite the ongoing decline in digital asset prices, Bitcoin maximalists remain steadfast in their determination for the future of Bitcoin. Exchanges have reported that their BTC balances have decreased as investors take coins from exchanges and deposit them into personal wallets. The holders are still on the side of Bitcoin.

A major accumulation event is likely to take place when Bitcoin breaks the USD 30,000 support level. Whales will take this opportunity to buy back assets they sold during the peak market and retailers will want a part of this promotion too.

Citing a low point for Bitcoin has been a topic of discussion for some time. Predict when Bitcoin will bottom out. So far, however, the bears appear to be holding their own as the asset hasn’t rallied significantly in the past few weeks.

Right now, BTC is hovering between $ 31,000 and $ 32,000, and the bears are slightly ahead.

SN_Nour

According to Newsbtc

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