Traders Who Shorted Bitcoin From All-Time High $20,000 Are Cashing Out: Is The Bottom Near?
In the past two months, several traders who shorted Bitcoin from its all-time high at $20,000 have started to cash out in the $3,000 to $4,000 range.
The closure of the trader’s Bitcoin short follows the publicized cash out of former International Monetary Fund economist Mark Dow’s short contract on Bitcoin in December.
Throughout the past 14 months of the worst bear market in the history of the cryptocurrency market, Bitcoin had some promising rallies that were acknowledged as a potential full-fledged trend reversal by many investors.
Despite positive technical indicators and the optimistic sentiment portrayed by the majority of investors in the cryptocurrency market, traders like Dow and Cryptofungus did not consider cashing out their short contracts for large profits.
At $3,000, traders found a low enough range to cash out, set aside the profits, and observe the market.
The Bitcoin price could certainly face more bloodbath in the weeks to come as it approaches the final phase of its 14-month bear market.
Even if Bitcoin falls from the $3,000 support level, which it has defended fairly well in the past four months, the $3,000 region is a safe place to lock in profits and ride out a potential accumulation phase that may occur after a bottom is established.
Joseph Young’s original article for ccn.com reduced by 71%
Related cryptocurrency news – Why This Technical Analyst Says The Bitcoin Price Rally Isn’t Over Yet
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