BITCOIN: Shorts and Longs
While waiting the market to define its final trend, which in my humble opinion is so early to predict right now, what about having a look what our "speculators" friends at BITFINEX think about the current status?
Let's do a quick comparison using the Daily candlestick chart of BTC/USD together with the charts of BTCSHORTS/USD and BTCLONGS/USD...
As you may know BTCSHORTS or BTCLONGS are a trading market product set in this case in order to record the the number of margined longs and shorts, measured in BTCs.
Essentially, they give you an interest information about the current market sentiment in terms of what the Margin Traders think about the future of BITCOIN... If BTCSHORTS is higher than the BTCLONGS is easy to understand that the BEARISH sentiment is trendy.
- For instance, the BTCSHORTS chart, today:
Current value: 35930
- BTCLONGS:
Current value: 25303
As you can see, at the daily charts, LONGS are decreasing rapidly, while SHORTS are keeping the place...
There is a nice indicator that may be used in order quickly have a look at the market "sentiment" based on the ratio of LONGs vs SHORTS... Ratio >1 = More Longs (Bullish sentiment?)
The current ratio is 0.7 , btw.
As always, be informed and get your own conclusions.
*Disclaimer: This is just my personal point of view, please, do your own assessment and act consequently. Neither this post nor myself is responsible of any of your profit/losses obtained as a result of this information.
Published by Toofasteddie
on
How would you explain this strong decrease of BTC Longs? PROFIT Taking?
Posted using Partiko iOS
It is just sentiment, there are Less people placing margin trading orders betting on higher price of bitcoin in long term...
Why the strong decrease? Frankly I don’t know but does not look good
Posted using Partiko iOS
Nice analysis @toofasteddie.