Bitcoin (BTC) surprised the entire cryptography community with a sudden increase of 20% today in less than 5 minutes. So far, no one knows what triggered that peak. We do not know if this was a big whale that made a large order in a large bag or a shark that settled some short positions that led to the sudden peak. So far, the number of marginalized shorts has also seen a large decline also around 20%, but those who have followed the BTCUSDShorts, while the BTC / USD has increased, know that the number of short margins has dropped after the Bitcoin price increase ( BTC). This means that it is unlikely that the peak has to do much with the shorts being liquidated. Although the price has begun to rise, he definitely liquidated some shorts along the way and scared some bears to close their positions.
Since no one knows definitively what caused this peak, it is not very useful to delve into this. What is useful to deepen is the intention behind this peak. If the sudden increase of 20% in the price of Bitcoin (BTC) was not intended to settle the margins sold, then what was the intention behind it? Well, for weeks the majority of the crypto community has anticipated the end of the bear market. As we know, most are always wrong, but it helps a lot when most are one on the same page. This move once again brought the majority on the same page, which definitely helps the bears in the long run as it allows them to attack more bulls as long as the Bitcoin (BTC) stays away from its true background. Those in the encrypted community who celebrate this move need to be cautious, as exactly the same thing happened just before the great decline that pushed it to less than $ 6,000.
The net result of all developments in recent weeks has been a strong blow to the bearishness determination. The number of short margins has now dropped by more than 15% and is expected to decline further. The daily chart for BTCUSDShorts shows the number of short-margins in strong support. In the days that follow, we will see a reversal of trend in BTCUSDShorts, since it is far behind schedule. It is important to note that BTCUSDShorts is even more exaggerated in the weekly time period. Retailers may give up now, but professionals face opportunities for a lifetime. This is one of the best times in history to be short in Bitcoin (BTC).
The crypto derivative market still remains overbought in the weekly time period. The stock market is in an alarming condition and poses a major threat to emerging markets if stocks see a decline in the coming weeks. Everything points to the same conclusion, ie whether Bitcoin (BTC) has reached the bottom or is not due to a major decline in the near future. There are some bold requests for a decline below $ 2,000 or a fund close to $ 1,000, but the fact is that we did not end here. The price is due for another significant downside and investors should know that the price may fall the same way it rose today. The fall, however, would have a better chance of being sustainable.