Bitcoin has jumped back from its critical support zone at $31,200 and trades at $31,835, at the time of writing. The first cryptocurrency by market cap has seen an increase in selling pressure during this week. Experts predict another capitulation event, but they can’t agree on the timing and volatility.
BTC with small gains in the daily chart. Source: BTCUSD Tradingview
Any move to the downside or upside could be built around a crab-like price action with long consolidation periods.
Popular trader and analyst Byzantine General noted the flip in funding rates on exchange BitMex and the increase in short positions. This is usually taken as a bottom sign as liquidity piles to the upside, giving market makers the opportunity to push the prices to those levels to drive further plays. The trader said:
Cause and effect lads. Nothing ever bottoms out when majority retail is long (or short) on it. Some signs of short aggression now, but no