Today, the total amount of short positions on Bitcoin was reduced to a minimum over the last six months. Last time such situation was observed on the market in November 2018. Now the sum of the shorts does not exceed 18 888 BTC is the lowest reading since August of last year.
Most likely, the bears are now in “limbo” as the leap Bitcoin to 4000 dollars has forced many traders to close their short positions. If the trend continues in the future, the market may occur a mass liquidation of shorts. This will lead to another wave of growth of the cryptocurrency.
It’s time to open long?
Looking at the chart from the stock exchange Bitfinex, traders closed down more than 28 percent of short positions since yesterday. However, “open the champagne” it is too early — the number of longs also fell in the last 48 hours. A “break” in the auction may be associated with the still-low level of volatility of Bitcoin.
Another reason — the mass fixing of profit by major players. Many people want to be safe and out of trades once Bitcoin important milestone. Note that the cryptocurrency is still not established well above $ 4,000, so talking about long-term growth while early.
At the moment the ratio of longs to shorts on Bitfinex is equal to 1.42. In other words, on each bitcoin short positions have 1,42 bitcoin long positions.
See also: five years later, Fiat will only be available to criminals. The future of cryptocurrency
From the point of view of fundamental analysis the main cryptocurrencies now a huge number of reasons for growth. Some of them acknowledged even by Elon Musk. Paired with the “bear trap” the next few months can be a good time to start a new “kryptovaci”.
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