Between June 1 and 2, more than $ 200 million in Bitcoin positions were liquidated.
This happened as the flagship cryptocurrency rose by $ 700 and then collapsed.
Since then, the price has been moving mostly sideways. On the same day, hedge funds increased their short positions from 4,500 BTC to 10,300 BTC, while other users increased their positions from 8,300 BTC to 11,000 BTC.
It is not the first time that there is such a discrepancy in the direction of the positions of the two groups. The report of the trade commission from last week showed that the bullish interest of retailers of about 12,000 BTC has not been observed since 2018.
At the moment, there is a gap between the two groups, with retailers having more BTC. This divergence will contribute to lateral movement of B itkoyn in the next few days. Given how investors are positioned, in the short run things seem to have more bullish prospects, but we can also see sideways movements.
A break of $ 10,000 is not necessarily a bullish sign, as there is strong resistance above this level. The $ 9,200 – $ 9,500 and $ 10,100 – $ 10,700 zones are extremely important. At the time of writing, Bitcoin is trading above the upper limit of the first range. It seems quite possible to see a breakthrough down in this range again.
Significant downward levels are $ 8,700 and the 200-day moving average is $ 8,100. If the breakout has a high volume supporting bears, the price could drop to the $ 7,350 – $ 7,800 zone. The asset is unlikely to fall below this level, but the next support down is $ 6,785.