Why has the Bitcoin price stagnated and why is there so much shorting?

By The analyticsinsight

Bitcoin undoubtedly continues to be and will continue to be, for the rest of its history, the greatest exponent of the cryptocurrency industry worldwide.

This is mainly due to the fact that it is the most representative cryptocurrency of all, and the one that has been best managed since the beginning of its history.

Its rules are clear, its code, although open, is very secure, and it is the only truly untraceable cryptocurrency.

Despite this, it does not escape the big problems that the cryptocurrency market has been having recently.

This has caused numerous users to keep their Satoshi under lock and key, and others, fearful of the crisis, get rid of them, lowering the price.

Especially in recent months, when several scandals that, although not directly related to Bitcoin, have affected it in terms of value.

In fact, it is not until now, in mid-December 2022, that Bitcoin has managed to slightly recover from this huge crash. Despite this, for a long time there were massive shorts against Bitcoin and various cryptocurrencies, which could have contributed to pushing the price of Bitcoin down.

Many of these operations have been closing in recent weeks, so the price of Bitcoin has managed to stabilize. But why does this happen?

Is crypto shorting good or bad?

Like virtually all things in trading, shorting crypto is neither good nor bad, in fact, it is just a way to profit from an asset that is falling in value.

And it is that, in general, the most lucrative operations are the so-called “long” operations, which are nothing more than operating in favor of an asset that you think is going to rise.

When you go short, you are trading against an asset that you think is going to go down. Here, if you are interested in, you can find a shorting crypto guide with different strategies you can use.

Bitcoin and cryptocurrencies had a long bearish period with a lot of volatility that made many investors prefer to trade this way.

This, being so massive, could have caused Bitcoin to drop in price more than necessary. With those short trades being liquidated, it is very likely that Bitcoin will begin a slow recovery.

In fact, it has recently recovered a modest rise that has made many looks at this cryptocurrency again. Away from the scandals that have shaken the crypto market, Bitcoin still has many holders who, throughout the unfavorable period, have not sold their Satoshi.

Will cryptocurrencies hit rock bottom?

Many believe that the cryptocurrency floor was already reached during the month of November, but many experts are of the opinion that, in fact, the price of cryptocurrencies, including Bitcoin, will actually bottom out during the first quarter of 2023.

It is possible that, When the New Year’s hangover begins in the markets, Bitcoin could go down again, and shorting operations will once again swarm against Bitcoin and against other cryptocurrencies, precisely because there will be those who want to take advantage of this drop.

Bitcoin will eventually recover, but for a true lasting uptrend to be reached there really isn’t a period that analysts can predict with certainty, although there is a potential bottom that many expect to hit in the early months of 2023.