Bitcoin short positions continued to pile up as BTC price dropped near $81,000, potentially providing the liquidation fuel for a revenge rally back above $90,000.
Bitcoin’s (BTC) price has dropped 14.5% in the past 16 days, pushing the Crypto Fear & Greed Index to 16 (Extreme Fear), which is its lowest rating year-to-date.
While selling has dominated markets over the past two weeks, Bitcoin derivatives data suggest the current trader positioning may lead to a recovery. Analysts are now weighing whether the latest sell-off has created conditions for a relief rally.
Key takeaways:
