Bitcoin is in the middle of a significant decline. The price fell 32% in seven days at the start of the month. After such a significant fall, why do I think it is still a good short idea?

Short cover

The price bounced off $27k on Thursday, rising to above $31k over the following days. I think this rise in price was due to a short covering after a profitable move down. These temporary bounces often trap retail long traders who believe the bottom is in.

I think there is further downside towards $27k and then to $23k. It will be a while before we see real strength and higher lows need to be put in to show this.

With the current bearish sentiment, any crypto pops set up good short ideas as the price fades. I think big money is waiting for lower prices on crypto before we see a move up so the short should be lower risk.

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