Bitcoin May Drop Back to June Lows as Short Trades Spike High! What’s Next?
Recently, Bitcoin has been trapping the bulls by manifesting short-term bounces, hitting the resistance and plunging hard. The weekends always have turned the tables for the BTC price as previously it bounced from the lower support, gaining more than 10% while slashed by the same margin this time.
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.
After #Bitcoin fell below $20.9k and #Ethereum below $1,540 yesterday, markets have rebounded a bit. Exchanges are seeing high levels of #short trades coming in, as people fear drops to June levels again. As long as they bet against markets, there is a higher chance of a rise. — Santiment (@santimentfeed) August 21, 2022
As per the data from the on-chain analytical platform Santiment, the exchanges witnessed a huge spike in short trades as the BTC & ETH prices dropped heavily. Currently, the markets appear to be under the influence of bears but a significant upswing may be preprogrammed.
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 Bitcoin price at the press time is around $21,476 with a gain of 1.12% in the past 24 hours after dropping hard by 13.49% in the past 7 days. The asset was trending within a bearish pattern from mid-June and with the recent sell-off, it appears that the correction phase has been accomplished.
Therefore, a notable upswing may knock the BTC price any moment from now.Source