Bitcoin price fell below $33,000 after an unknown whale trying to short it with over 5,000 BTC on Bitfinex
As AZCoin News reported, Bitcoin price made another attempt to rally on July 8 but encountered another setback. The price has dropped slightly since then, to date, reaching a low of $32,420. The cause is believed to be short-selling pressure returning to the market as a trader tries to short it with over 5,000 BTC.
BTC/USD 4-hour chart | Source: TradingView
Short selling pressure returns to Bitcoin price as the Bitfinex shorts jump by over 5,000 BTC
Bitcoin dipped to $32,000 during today’s trading session, especially as BTC failed to break the key resistance at $35,000. This price action also coincides with the time when short positions build upon major exchange Bitfinex were spotted. Specifically, a Whale account has borrowed a total of 5,219 BTC (worth $173 million at $33,000), and this number is still growing. Most short positions are non-hedged.
“According to datamish data, from 13:00 Beijing time, an account (or institution) has to borrow Bitcoin to short on Bitfinex,” Wu Blockchain reported. “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, the total number of Bitfinex short positions has increased by 160% in about two hours. However, Bybt’s figures still show a balance among Bitfinex shorts.
A significant surge in Bitfinex short contracts is being attributed to Bitcoin’s current downturn but there are other major factors at play.
Bitcoin’s chances to crash below $30,000 have been predicted in advance
Trader Peter Brandt conducted a poll on Twitter as to whether there is a possibility that Bitcoin could drop below $30,000. Because Brandt seems to expect this drop to take place.
This Trading Legend offers options such as:
- Won’t break $30,000
- Well below $20,000
Among the options offered by Brandt, there is a Bitcoin option that touches $25,000, or $20,000 and even lowers this level. However, he also left another option that BTC will stay above $30,000 after all. As of now, about 31% of people think that Bitcoin will not surpass $30,000. More than 25% believe it will crash below $20,000. 24.6% thought the top cryptocurrency would hang in the $20,000 – $25,000 range, and 19.3% voted for the $25,000 – $30,000 range.
Source: Peter Brandt/Twitter
Additionally, Brandt shared a Bitcoin chart with a pattern on it that shows why he expects Bitcoin to drop below $30,000 soon.
Elsewhere, the prominent Bitcoin opponent Peter Schiff offered a similar scenario to Brandt’s. The difference is that this time, Bitcoin even dropped below the $10,000 price mark.
“Bitcoin continues to carve out the right shoulder of an ominous head and shoulders top pattern. If Bitcoin takes out the June low, the market could easily collapse below $10K, especially if leveraged speculators are forced to sell. No one seems to acknowledge this possibility”, Schiff tweeted.
The $20,000 level will be a powerful overhead resistance, according to Schiff’s comment in the thread. It seems Bitcoin is at risk of invalidating a bullish scenario. At the time of writing, volatility still means a bounce back in the range, as BTC swings around $32,500 following lows near $32,400.
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