Lately, bitcoin has been trapping the bulls by showing a short-term bounce, hitting resistance, and pushing hard. The weekend has always turned the tables for BTC price as it previously rebounded from lower support, this time gaining over 10% by the same margin.
Due to the uncertain behaviour, the traders now appear to have not to hold out any hope of Bitcoin regaining levels above $25,000. Therefore, the investors are now heavily bet on Bitcoin short trades as now it is assumed that the BTC price could drop back to the June lows.
According to data from on-chain analytical platform Sentiment, the exchanges saw a huge increase in short trades as the price of BTC and ETH fell sharply. Currently, the market appears to be under bearish influence, but a significant bounce can be pre-programmed.
The traders are now mounting huge selling pressure by shorting Bitcoin but no sooner than the price hits the lower target, all the short trades will be liquefied leading to a huge price surge. Even if the asset drops below $20K or $19K, it may be only short-lived, as a huge influx of buying volume could uplift the price.
The price of bitcoin is around $21,476 at press time, up by 1.12% over the past 24 hours after a massive 13.49% drop over the past 7 days. The asset was trending in a bearish pattern since mid-June and with the recent selloff, it seems that the correction phase has been completed.
Therefore, a notable upswing may knock the BTC price any moment from now.
