Bitcoin is attempting to form a bottom altcoins continue to decline, which opens up opportunities on the long and the short side.
The total crypto market capitalization has recovered from the Sep. 6 lows near $314 billion but it is struggling to sustain above the $350 billion mark, which shows that higher levels continue to attract sellers.
Bitcoins (BTC) dominance fell from above 68% in mid-May to about 56% in the first half of this month as DeFi tokens embarked on a strong bull run.
However, in the past few days, the DeFi assets have witnessed sharp corrections and their volatility has increased. This could possibly shift traders attention back to Bitcoin. Its also possible that Bitcoins inability to hold above the $11,000 level could also be negatively weighing on the confidence of altcoin and DeFi-token traders.
Crypto market data daily view. Source: Coin360
Although Bitcoin has been struggling to find momentum, a positive is that the volume of Bitcoin futures trading on Bakkt has been increasing and the exchange whale ratio is near yearly lows. This suggests accumulation by the whales and institutional traders.
Currently, most major cryptocurrencies are not following a general trend as the price action has been mostly coin specific. This has opened up opportunities both on the short side and the long side. Hence, in todays list, two short ideas have been discussed for the traders who are bearish on the crypto markets.
The relief rally in Bitcoin is facing stiff resistance near the 50% Fibonacci retracement level of $11,147.60. This shows that the bears have used the current relief rally to initiate short positions.
BTC/USD daily chart
If the bears can sink the price below the uptrend line and the $10,625 support, it will signal weakness. If the BTC/USD pair sustains below $10,625, it wi ...