Bitcoin positioning implies that BTC/USD is still a buy

Traders are more interested in buying Bitcoin than in selling them, according to Bitfinex positioning data compiled by eToro's analyst Mati Greenspan. The strong long positioning may signal that the upside momentum is gaining traction, which bodes well for Bitcoin bulls. 

It's very clear what the market thinks of this latest selloff! Bitcoin buy positions (blue line) are at their highest level since February, while bitcoin sell positions (orange) are near their lowest level ever, he wrote on Twitter recently.

While Mati Greenspan bets on further recovery, some other cryptocurrency experts expect deeper sell-off. Thus, recently, Bitcoin tech analyst Peter Brandt noted that a Head-and_shoulder pattern on Bitcoin's long-term charts may prompt a deeper decline. 

At the time of writing, BTC/USD is changing hands at $7,080, unchanged since the beginning of the day. The coin has recovered from the recent lows and touched the area above $7,300 during early Asian hours; however, the upside momentum seems to be losing traction at this stage. 

Meanwhile, the short-term technical picture looks positive as long as the price stays above $7,000. A sustainable move below this support will attract new short-term sellers to the market.

BTC/USD, 1-hour chart