Bitcoin’s price will rebound if it falls when Bitfinex crashes 25%
Bitcoin’s price is expected to rebound shortly after falling 25% during the Bitfinex crash, as we can see more on our latest Bitcoin news today.
Bitcoin bears should be on the lookout for a potential blow as the number of margin short positions on Bifinex drops by 25%. The record fell to 11,066 BTC on Saturday from 14,897 BTC at the start of the session. Meanwhile, the decline came as part of a larger downward move that began on July 15th as the total number of trade short positions reached 17,053 BTC during the day. BTC / USD shorts represent the number of bearish margin positions on Bitfinex, measured in BTC, and traders have borrowed money from the exchange to bet on the resulting bearish price for the instrument or currency pair. With this in mind, the latest data shows that traders have reduced their lever-based bear market in the BTC market and Bitcoin price will rebound.
Well-known trader Scott Melker stated that a sharp drop in short positions on Bitfinex had caused the spot price of BTC to rise, adding that he would be watching the market for a new bullish reaction. If you take a closer look at the correlation between shorts, you can see an erratic negative correlation. Bitfinex’s short position began after 2020 with a bear run that coincided with a surge in the BTC spot market and derivatives market. A retreat in Bitfinex short positions coincided with the rise in BTC price from a lower $ 45,000 to a high of $ 65,000.
Downward pressure on BTC remains despite the decline in BTC USD shorts as well as grayscale investments that unlocked GBTC shares valued at 16,000 BTC after a six-month lock-up period. JPMorgan & Chase’s strategist, led by Nikolaos Panigirtzoglou, has warned that the Grayscale Massive Unlock Event could become the source of a new wave of sales in the market. On the chain analyst Willy Woo reiterated similar concerns a week ago, stating that when the GBTC premium goes down, it often distracts investors from the spot market. Woo says:
“Investors now have more incentives for GBTC shares than for BTC, which eases the buying pressure on the BTC spot market somewhat. This is a downward trend. “
JP Morgan is pessimistic about the upcoming GBTC unlock.
Here I go into the inner workings so that you can decide for yourself.
There are 2 effects, one increasing, one decreasing. What matters is how they interact. IMO the price will go up immediately. https://t.co/xcfMbhCBPP
– Willy Woo (@woonomic) July 6, 2021
NebraskanGooner also expects an explosive scenario for BTC if it drops below $ 30,000 and the formation of an inverse cup and handles the formation if BTC falls below $ 20,000 in the analysis, next below the range of $ 30-31,000, as on the one Graphic can be seen. Woo predicts a bullish result and says:
“Coins are shifting from speculators to long-term investors at a rate not seen since February, when the price rose from $ 30,000 to $ 56,000. I expect the price to break out of its bearish sideways band next week, followed by a rebound towards the $ 50,000- $ 60,000 region before further consolidation. “
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