While a notable trend reversal was expected with the Bitcoin price, yet another plunge bragged in the rally. Currently, the asset is experiencing a free-fall below $47,000 without much interference from the buyers.
In such a scenario, a strong rebound also may not uplift the BTC price to a large extent. If in case the asset yet again smashes the lower support levels at $46,451, then Bitcoin may be in deep trouble.
In the past trading hour, the Bitcoin platform witnessed some huge long liquidations, which might have dragged the price down.
On the other hand, the BTC short positions are also surging to a notable extent. Despite some short liquidations, yet the open interest is expected to surge in the next couple of hours. In turn, this signifies a notable downtrend is still in place for the Bitcoin price.
Currently, the BTC short has surpassed the crucial 200-day MA and heading towards resistance at $1125. A slice through these levels may validate the downtrend of the BTC price towards lower lows.
Yet if the BTC shorts range above the above-mentioned pivotal levels, then the downtrend of Bitcoin could retest the $44,000 levels yet again. And hence end the yearly trade on a bearish note.
After huge sell-offs in the past hour, Bitcoin is attempting a minor retracement and the price is yet again approaching the $47,000 mark.
It may be a temporary relief for the buyers, yet the sellers still appear to have a huge impact. And hence an upcoming couple of hours could be very crucial as the BTC price is hovering within a ‘Do or Die’ position.