Bitcoin has recently fallen below a critical holding point of $ 32,000 and in response, retail investors have seized this as an opportunity to make money from the falling price of Bitcoin. So far, retail investors have started charging shorts, an incredibly bearish metric for the market.
Retail Investors Charge Short | Source: Twitter
So many shorts placed in such a short period of time could show other investors that the price of the digital asset will eventually drop and thus lead to panic selling. Although this is never always the case. The fact is that no one can pin down exactly what will happen to the digital asset and as such every short or long that is placed now is mere gambling. More like guesses than actual predictions.
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According to this Twitter post, retail investors have been constantly squeezing the digital asset as the market struggles to recover. This could show that the digital asset now more than ever could be close to the famous bitcoin bottom.
Investors poured out their views on longs placed by retail investors. One user posted that this could lead to a cascading bottom that will be much larger than any reversal.
The chances of a cascading bottom are far greater than any reversal here. Retail money for one time.
– Crazy Tuliped (@ TonyD0214) July 16, 2021
Forecasts remain that the digital asset could break the $ 30,000 bastion it has held for weeks. Speculation abounds that this is the point at which institutional investors would ramp up their investments and the bulls would re-enter.
BTC price amid bearish sentiment | Source: BTCUSD on TradingView.com
Bitcoin has fallen in the last 24 hours, down to almost $ 31,000, and recovered slightly from this drop. But this is not enough to renew belief that a rally would be more likely than a bottom.
If the digital asset breaks above $ 30,000 before the week is out, then it could well be in bearish territory for bitcoin. Regardless, other investors believe this will trigger a relief rally over the weekend.
The shorter ones hope to break the current bitcoin support, but so far, bitcoin has held. But how the rest of the weekend will play out is unknown.
Bullish sentiment for Bitcoin?
Despite the continued decline in the price of the digital asset, bitcoin maximalists remain steadfast in their determination for the future of bitcoin. Exchanges have reported crypto holdings plummeting in their balance as investors pull coins off exchanges and put them in wallets. Holders continue to support the coin.
Large accumulation events are likely to occur if bitcoin breaks the $ 30,000 support. The whales will take this opportunity to buy back the assets they sold during the market boom, and retail investors will want a piece of that action.
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Calling the fund for the digital asset has been a topic of debate for a while now. Forecasts are haunting the market as to when the bitcoin bottom will be hit. But so far, the bears appear to have a grip on the price, as the asset has failed to post a significant rally in recent weeks. Just keeping your current position on the charts.
Right now, BTC continues to target the price of $ 32,000 as the bears drag the price down. The digital asset has shown strong bounce patterns so far, as it is now trading at just over $ 31,900.
Featured Image from The Balance, Chart from TradingView.com