Bitcoin short-selling sentiment is at an all-time high, is a V-shaped rebound or a "collapse without return" on the horizon?
On April 4, market sentiment clearly leaned towards conservatism, with most traders expecting Bitcoin to continue its downward trajectory, targeting the $69,000-$70,000 range. However, a small number of "contrarians" believe that the bottom may be just around the corner.
What truly drives the market is a battle in the real world: the tariff game between China and the United States is heating up, with Chinese tariffs rising to 84%, reminiscent of the "black swan volatility" seen during the pandemic era when global assets were interconnected.
If this dispute continues to drag on, the market may struggle to escape emotional "seesaw" dynamics; however, if one day unexpected "cooling news" emerges, it could trigger a V-shaped rebound, igniting the short-selling sentiment into an explosive reversal.
