Bitcoin short sellers are in big trouble – upward momentum underway
The Bitcoin price has been in the last four days at 10 Percentage increased and after such a big rally there is a short-term pullback. However, a top trader says it is not so easy for short sellers in this environment, which could drive BTC to an ever larger rally.
It will be difficult for shorts to chase longs to maintain bitcoin momentum
As a well-known trader pointed out, even if an investor bitcoin near the top in the range of $ 8. 900 to $ 9 . 00 0, the liquidation price would probably be around $ 8. 500.
Assuming an investor would take a long position at $ 8. 920 with a 25 fold the lever, then the price for Bitcoin would have to be $ 8. 529 fall to liquidate the position or come close to liquidation. Short-term price movements are often dictated by a cascade of long or short liquidations on large margin trading platforms like BitMEX.
If a significant amount of shorts start to be liquidated, more short positions will be stopped, which will drive up Bitcoin price. And it's the same for longs on the downside.
The 10 – percentage increase in Bitcoin in the However, in the past four days, BTC has placed a range well above the large support levels.
Where do traders see the goals?
A prominent crypto trader, known as Flood, said the range was $ 9. 200 to $ 9. 400 is a large area of interest. This means that there is significant historical trading activity in this area and it is likely that it will determine BTC's short-term direction.
Many technical analysts expected the bitcoin price to correct when it reached $ 8. 900 since November 2019 acts as a resistance mark. The lack of a strong rejection or a retest of the lower support level at $ 8. 900 surprised some traders, which could indicate that this current upward momentum is strong.
“The pullback that I assumed would happen was simply much smaller than expected. Maybe bears really need Vegeta ($ 9000 ) to kill over-indebted longs. Maybe they are not even able to do that. Either way, I'm staying long, ”said dealer DonAlt.
Proof of text: newsbtc