The most tormenting thing about this drop in Bitcoin isn't that it fell to around 73,500, but that every time it drops a bit, more people think the opportunity has come. As a result, more and more people try to bottom-fish, yet the real bottom refuses to appear for a long time.
Now BTC has dropped to around 73,586, and the long-short ratio is as high as 2.77. On the other hand, it still shows the bears dominating 📉. More people are bullish, but the price still can't rise.
Actually, many people overlook one detail: the long-short ratio often counts the number of accounts, not the scale of long-short capital. 100 people each buying $1,000 may not withstand a single whale selling $1,000,000.
The market is never decided by who has more people. What's more troublesome is that many people's reason for bottom-fishing is simply that they think the price is cheap enough.
80,000 feels cheap, 77,000 feels even cheaper, now 73,500 feels like an opportunity again. But cheapness is compared to yesterday, not tomorrow. If the downtrend hasn't ended, the more you buy as it falls, the deeper you might get trapped.
$BTC
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