Over the weekend, the cryptocurrency Bitcoin (BTC) attempted to break above the $60,000 level but faced strong resistance and dropped sharply to the $58,000 level.
Attempt to Break $60,000 Level
The $60,000 level proved to be insurmountable for Bitcoin, leading to a significant decline. The current market situation raises many questions and speculations.
Factors Behind the Drop
Uncertainty regarding the reasons for the decline led to various opinions and hypotheses. Cryptocurrency investor HODL15Capital claimed that increasing short positions were behind the decline. Posting from his account on X, HODL15Capital noted that as soon as the Bitcoin price rose to $60,000, Bitcoin shorts experienced an aggressive increase across multiple exchanges. He highlighted a massive imbalance across multiple different crypto exchanges, including Deribit, Bitmex, Bitfinex, Kraken, and HTX.
Expert Predictions and Opinions
Short positions on Ethereum have also increased apart from Bitcoin. HODL15Capital stated that high leveraged short positions of 50x and 100x on Binance might soon be liquidated, indicating a potential market reversal. The expert suggested that if these leveraged shorts on Binance are wiped out, the market could see a resurgence.
In summary, the sharp drop in Bitcoin is attributed to the increase in short positions, causing a market imbalance. Experts predict a possible market change in the near future.
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