Analysis: Bitcoin Shorts Accelerating Entry, Market Nears Bottom of Long-Term Trend Channel

Odaily – Rich Rosenblum, co-founder of crypto market maker GSR, said Bitcoin may be approaching a technical bottom. After Bitcoin fell below its 200-day moving average, a large number of leveraged long positions were liquidated, while more traders were attracted to build short positions, further intensifying selling pressure. Bitcoin is currently nearing the bottom of a long-term trend channel, and over the past year, the current price level and slightly below it have repeatedly found support.

Market analysis suggests that Bitcoin has fallen about 25% since October 21. From October 30 to November 13, U.S. spot Bitcoin ETFs saw net outflows of nearly $3 billion. Recently, the market has also been hit by rising interest rate expectations, risk-off sentiment triggered by the AI sector, and the recent hack suffered by Binance, accelerating long liquidations and short entries.

Richard Galvin, executive chairman of crypto investment firm DACM, believes that the upcoming initial public offering of AI giant Anthropic may divert funds away from the crypto space. The current price action is very similar to the situation during SpaceX's IPO pricing period earlier this year. Crypto still appears to be a source of short-term financing, especially for retail investors. In addition, there are many other macroeconomic headwinds. (Bloomberg)