112 Interactions, 2 today
Short selling pressure has returned to the market, with one trader anticipating a retest of $31,000 as a result of support weakening.
Bitcoin (BTC) dropped below $33,000 on Thursday after a trusted trading range was threatened with invalidation.
Trader: $31,000 retest next for BTC
Data from TradingView showed BTC/USD dipping into the $32,000 range during trading on Thursday.
The move came after an overnight pullback from about $35,000, when Bitcoin failed to break through critical barrier.
As a result, Bitcoin risks invalidating a bullish scenario in which it enters the next stage of a Wyckoff distribution and has the ability to leave to the upside — around $39,000.
“Losing $33K range and I’m looking at $31-31.4K,” popular trader Michaël van de Poppe warned just before the dip began.
At the time of writing, volatility still meant that a recovery back within the range was possible, with BTC/USD circling $32,500 after local lows of $32,490 on Bitstamp.
Bitfinex shorts spike 160% in hours
The most recent price movement occurred hours after new selling pressure, owing in part to an unknown whale attempting to short it with almost 5,000 BTC.
According to writer Colin Wu, short holdings on the key exchange Bitfinex had grown on Thursday.
A mysterious Bitfinex user started initiating short bets with at least 5,219 BTC, valued $173 million at $33,000 levels.
“According to datamish data, an account (or institution) borrowed bitcoin to short on Bitfinex at 13:00 Beijing time,” Wu stated.
“As of 15:03, he borrowed a total of 5219 BTC, and this number is still growing. Most short positions are non-hedged.”
At the time of writing, total Bitfinex short positions had increased 160% in around two hours.
Bitfinex shorts remained roughly balanced with longs, Bybt figures nonetheless showed.
The whale shorting is not new. As reported, June, likewise, saw fluctuations in trader behavior, with Wu eyeing 15,000 BTC worth of bets flooding in on a fresh price dip on June 25. The next day, BTC/USD saw a fresh retest of $30,000 support.