As you can see, shorts tend to be at their highest when the market hits its bottom, and at their lowest when markets hit their top.
We're currently at a value which is second to the ATH number of shorts, and still growing. Either the bottom is already in, or even if we push down one more time, the larger number of shorts will probably support the price as so many people take profits. (also, longs are very very low already).
So in short, there is a huge number of people who have already sold BTC, and they *must* buy it back - many will do so in the vicinity below this price to take profit, and prop the price up, and many many more will do so as stop losses or liquidation the second BTC makes a strong upward movement, creating a cascade of upward pressure. At that same time all of the people who had recently closed their longs will jump back in to new long positions, and help push the price even more (and very few people in long positions will close them to take profits, because there are hardly any longs open (relatively speaking).
We're currently at a value which is second to the ATH number of shorts, and still growing. Either the bottom is already in, or even if we push down one more time, the larger number of shorts will probably support the price as so many people take profits. (also, longs are very very low already).
So in short, there is a huge number of people who have already sold BTC, and they *must* buy it back - many will do so in the vicinity below this price to take profit, and prop the price up, and many many more will do so as stop losses or liquidation the second BTC makes a strong upward movement, creating a cascade of upward pressure. At that same time all of the people who had recently closed their longs will jump back in to new long positions, and help push the price even more (and very few people in long positions will close them to take profits, because there are hardly any longs open (relatively speaking).