Bears die: the number of short positions on Bitcoin has reached a three-month low

Date:

2018-11-08 18:15:09

Views:

52

Rating:

1Like 0Dislike

Share:

Bears die: the number of short positions on Bitcoin has reached a three-month low

Yesterday, bearish sentiment set record over the past three months. According to the stock exchange Bitfinex, the amount of open short positions on Bitcoin fell to its three-month low. At approximately 11:00 UTC, the number of shorts fell to 21 434, that is, 33 percent only for the last eight days.

Will this event start bullrun? During the fall, the number of long positions grew steadily, though only by 10 percent in a week.

How will this affect the price of Bitcoin

Indeed, the mood of the market players gradually begin to change in favor of the bulls. 29 Oct cryptocurrency almost broke out of the narrow horizontal channel, but buyers failed to gain a foothold on the desired price levels. As a result, the value of the asset grew by only 4 percent, and then again fell down.

On the side of the bulls also is the fact that price of Bitcoin is historically the most growing in the fourth quarter of the year. According to Coindesk, in the history of cryptocurrencies just single Nov ended in the loss of value — it was back in 2011. If you look at the chart below, it becomes clear why in the beginning of November, the number of shorts falling rapidly to a minimum.

image Source — Reddit

When most traders are playing the short or long trading position becomes the «crowded», that is, the asset enters a phase of oversold or overbought. In such a situation can happen short/long squeeze — a sharp price movement against the General mood of market players, traders are forced to close a losing position, thus even more pushing price in the opposite direction.

However, this is far from us. The ratio of longs to shorts is still about the same level — 53 percent to 47 percent. The exact date of the beginning of bullrun you can always find in our .

Recommended

John McAfee: do not panic in a bear market

John McAfee: do not panic in a bear market

Panic is for the weak. Even fully impaired portfolio with aldaine is not a reason for discouragement. So says John McAfee, known for his bullish about the price of Bitcoin. As he said on Twitter, the last plums of the stock market was another «k...

Bitcoin will drop to $ 1,000. Unprecedented bearish analyst

Bitcoin will drop to $ 1,000. Unprecedented bearish analyst

After Bitcoin is still shaking, and with it all the alternative cryptocurrencies. Literally in a few hours and BTC for almost a week continues to fall. At the moment, it ranges at around $ 4,500, while the market capitalization of the coins fell belo...

Into the abyss: Bitcoin Cash continues to fall. When the rebound?

Into the abyss: Bitcoin Cash continues to fall. When the rebound?

Cash is under strong selling pressure, which appeared on the market after a draining of Bitcoin. Hardwork althena was not the best way, even if one of the parties « hasraton» managed to gain a formal victory. In the near future, the asset ...

Comments (0)

This article has no comment, be the first!

Add comment

Related News

The attack stole $ 2 million Pirl? It does not matter, the developers will still napadayut

The attack stole $ 2 million Pirl? It does not matter, the developers will still napadayut

October 14, developers Pirl recorded a 51% attack on the network of cryptocurrency. Immediately after discovering the burglary, the officers undertook to remedy its consequences and at the same time asked stock exchanges to freeze...

It's not the money: the representative of the Bank for international settlements again criticizes Bitcoin

It's not the money: the representative of the Bank for international settlements again criticizes Bitcoin

bitcoin is a speculative investment with great potential for growth. Thinks most cryptoendoliths, but the owner of the shares of one of the world's largest financial institutions disagree. In his opinion, Bitcoin and altcoins are ...

Bitmain broke? The company cannot pay its debts with its main supplier

Bitmain broke? The company cannot pay its debts with its main supplier

Now will not cooperate with its main chip supplier Taiwan Semiconductor Manufacturing Company (TSMC). The relationship between the two companies are not in the best shape, Bitmain already owes over $ 300 million for the supply of ...