Traders are showing their lack of confidence in Bitcoin by betting against it, according to data from Cointelegraph and TradingView, which show that the price resistance for the world’s largest cryptocurrency is consolidating at $40,000 with a bearish outlook.
Data from on-chain analytics site Coinglass confirmed that traders are finding short positions on Bitcoin more profitable with a chance that the BTC/USD pair could trade lower.
A short position refers to a trading technique in which an investor sells a security with plans to buy it later, anticipating that the price of a security will fall in the short term.
Bitcoin, which was trading at $40,198.56 at the time of writing, has been struggling to sustain positive momentum, closing last week with its support tracking $37,500, according to a Coin Desk report.
BTC is down by 17 percent so far this year, compared with a 9 percent loss in the S&P 500 and a 6 percent gain in gold over the same period.
Bitcoin’s price has seesawed around the $40,000 mark since it sliced below on April 11 as U.S. inflation rose to a 41-year high, pushing yields on bonds higher and tracking bubble stocks that have been sliding in recent weeks.
Bitcoin’s steady pullback was triggered on March 28 after buyers failed to push the price above the $48,000 resistance level, CoinDesk reported.
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Charts show the Bitcoin price falling below the 600-day moving average, a sign that could be bearish for the crypto. The price is crossing below the 600-day moving average curve, a line that has served as support for BTC previously, according to an analyst at CryptoQuant.
A moving average is an analytical tool that takes the average of any quantity over a period. It can be used by investors as an indicator of market sentiments and predict the direction of an asset price.
But not everyone has cold feet about Bitcoin in the short term.
YouTuber Crypto Roger argues that the current price is “one of the best ranges for buying Bitcoin!”
“BITCOIN WILL EXPLODE IN 2022! Prepare yourself for the next runup. Historically speaking, this has been one of the best ranges for buying Bitcoin!” Roger tweeted.
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