Historically, this has been considered the ideal time to buy the dip, accumulate, when the crowd has turned against Bitcoin.
Though the % of large investors holding Bitcoin has dropped considerably, the percentage of profitable investors has gone up.
So what choice does the retail trader have? You either buy the dip and accumulate till the price rallies above the $35000 later this week or you short Bitcoin and book profits from shorting.
That may be a profitable choice in the long-term since that there may be an altcoin rally later this summer, however, selling Bitcoin holdings at the profit is the only choice that leads to an immediate loss.
Ekta is a full-time journalist at AMBCrypto and her specialization lies in spot markets.
Disclaimer: AMBCrypto’s content is meant to be informational in nature and should not be interpreted as investment advice.