Let's step back and take a look the whole picture. Shall we?
People setup the short positions at point 2 because the divergence in RSI. The price hit a point 3 where their stop losses were. That caused a big green candle right after that. When it reached to 8K, people went long from 4K, shorted the price. That caused the price dropped 20%. What may happen next? There will be a massive dump at 11k-12k. Because it's time for people who got in BTC at 6K last couple years. Protect your money. GOod luck everyone!
People setup the short positions at point 2 because the divergence in RSI. The price hit a point 3 where their stop losses were. That caused a big green candle right after that. When it reached to 8K, people went long from 4K, shorted the price. That caused the price dropped 20%. What may happen next? There will be a massive dump at 11k-12k. Because it's time for people who got in BTC at 6K last couple years. Protect your money. GOod luck everyone!
Because all people got stopped out, had to buy BTC back. People went long from 4K, they short BTC at 8K and buy back at the 61.8%. All of that have caused the price went back up quickly. And it will be continuing going up to 11K-12K range.