Bitcoin Was Heading for a Big Upsurge, Traders Explain What Changed

With the firm recovery of the Dow Jones Industrial Average and Bitcoin defending the $6,400 support level with strength, crypto traders anticipated the Bitcoin price to rebound to at least the mid-$7,500 area in the short term. In the past 48 hours, however, they have started to lean toward a resumption of a bearish trend for Bitcoin, as the relief rally of the dominant cryptocurrency is seemingly coming to an end.

Much data from the imbalanced buy and sell orders on major exchanges like BitMEX and the decline in the total open interest of Bitcoin futures point toward lacking demand from buyers. Historically, when the Bitcoin price came close to a full-blown capitulation phase as seen in December 2018, it required months of accumulation in a low price range to recover over a lengthy period of time.

The last time Bitcoin dropped to the low-$3,000s region, it took around four months to begin a gradual recovery to the $7,000 to $8,000 area. There are concerns that Bitcoin’s price may…