 After a previously bullish week, this week has unfortunately not been as rewarding. After hitting a high of 41,000 on Tuesday, prices have since dropped around 14% since then. What has caused this drop? Well for one, the bearish death cross is still upon us guys and that fear and uncertainty that comes with the death cross is still in many people's mind as people don't know what to expect from there. Also as long as we stay below that $42,000 price level, all the bearish case scenarios are open. Also the Fed spoke on Wednesday putting a little bit of pressure back on Bitcoin as they said that they could raise rates by as soon as 2023 and stop their bond buying program sooner than expected. Now this is mostly a overreaction here as it's been the norm anytime we hear any type of hint or smell of anything that might be bearish or sound bearish during such a sensitive time in the market. The stock market has actually also been down here as you can see in the S&P 500 and as you can see here with Bitcoin and the S&P 500 correlation has been kind of the theme for 2021. So let's go ahead and dive into the Bitcoin charts and see what we might be expecting this weekend. Hey what's up Jay here and welcome to Bitcoin Daily bringing you guys the best tips tutorials and ideas to help you guys become profitable and successful investors. The goal of this channel as always is to bring you guys the resources and knowledge to take you up to that next level. So if you guys enjoy this video don't forget to smash that like button if you guys are new here to the channel don't forget to subscribe and turn on the notification bell. Alrighty guys as you can see here we've basically since Tuesday since we hit that 41,000 high we've kind of just been going down today we've dropped about six to seven percent we've hit a low of 35,277 and we actually just hit right now now what we're what we're seeing here we're kind of testing the same area that we broke out from right so we definitely need this support here to hold and get a to see a bounce back up right if we do see a bounce here if this support here holds which you can see it's held here held here it's held all these wicks over here so there's definitely a lot of support here we just need to make sure that it holds here so I mean we could see possible wicks down as low as you guys saw here this went down to 31,000 before this one went down to 32 so we're hoping not to see you know the prices drop that low so that we can continue kind of this higher highs higher lows trajectory here that we've been doing over the past week trying to keep this intact but in the scenario that we did break below this as you guys already know the first support here is going to be around that 32,000 range and below that then we can possibly test that 28 to 30,000 range now it's no secret that the death cross is among us guys and it's going to happen soon like we said before so the question becomes when will the death cross happen and if we just kind of project you know based on where it's currently pointing if it continues in that exact direction we should be seeing that death cross possibly this weekend so you guys can see right here especially now with today's price pushing lower if we close lower today that death cross could definitely happen possibly by tomorrow so if you guys are unfamiliar with what the bitcoin death cross is I recommend checking out this video that we did a week ago called the bitcoin death cross explained I also recommend watching the video that we did last Friday called the bitcoin death cross bear trap in this video we have our fellow friend and analyst John Berry from quantifycrypto.com where he goes over how this death cross is similar to 2019's death cross and how this death cross could actually be setting us up for a bear trap impossible short squeeze so what exactly is a short squeeze a short squeeze is a rapid increase in price due to the fact that there's an excess of open short positions for the underlying asset so if we take a look at the open short positions currently in bitcoin you'll see that from June 6 short positions have gone up 1632% guys that's in a span of less than two weeks and if we zoom out a bit you will see that this is not only the high of 2021 but this is higher than it was at any point in time during 2020 as well if we go all the way back this was a high of 2020 during the pandemic right now we are higher than that this is the highest we've had in short positions since back in June what was it last time we saw this number it was around June 15th 2019 so if we look at the weekly right this is for still for short positions back in June 10th right so let's say June 3rd June 10th June 17th and then finally June 24th it went down right the the short open positions dropped now why was there such a huge drop after it was up so high if we go back in time and look at the price of bitcoin during that same exact time while those short open positions were that high we will see that we got an increase in price during that time so June 10th of 2019 we had an increase of 17 the week of June 17th we had an increase of 20% and then even the the week of June 24th it continued up to a high of $14,000 which ended up being the high of 2019 that was the highest price we saw so if we measure from the bottom of the price here when the open short positions started to climb all the way to the top which is when the short open short positions started to close you will see that we bitcoin had an increase of about 87% during that time so in a span of four weeks bitcoin went up 87% right that's during the same span here look June 3rd June 10th June 17th and then finally June 24th when we had the most open positions that we've had for short positions right since right now so what was it that happened during that time it's simple a short squeeze remember that open short positions is an indicator for the majority of positions that are open so right now the majority of people are going short that doesn't mean that the smart money is there that just means the majority is there usually the smart money likes to play on the other end of that spectrum so that's just a few things for you guys to think about over this weekend over the next few days when we do have the bitcoin death cross happening and when we do start getting a lot of panic a lot of fud in the market because of the death cross remember we have a lot of short positions open right now and the smart money usually likes to cause max pain and go against what the majority are doing so if you guys have enjoyed this video today go ahead and smash that like button guys if you guys are new to the channel don't forget to subscribe and turn on the notification bell guys thank you guys so much for tuning in and watching this video I hope you guys have an incredible weekend we will update you again on Monday so till then guys be safe peace and love