Is a Bitcoin short squeeze about to begin?

in bitcoin •  3 months ago

Is a short squeeze under way?

Much has been made of the bitcoin short positions of late, and for good reason.

Short positions on Bitfinex are near their highest levels ever. Recently getting right up near 40,000 bitcoin.

Which represents roughly $260,000,000 worth of bitcoin sold short.

Now, positions appear to be starting to unwind.

Check out the chart:

(Source: https://twitter.com/mattjcote/status/1033369728511868928)

As you can see, the number of short positions on Bitfinex got right up near the all time high numbers seen only one other time.

Which means bitcoin has never been sold short more times than it is currently, except for one other time.

What to expect?

The last time short positions were this high was back in April of 2018.

When those positions started to unwind, bitcoin proceeded to rally some 50% from the lows.

A similar rally off of the recent lows would take bitcoin to around $9k.

Will we see something similar here?

That I cannot say, but it is a good setup for a bitcoin rally should we get a decent catalyst.

The kindling is in place, now all we need is that spark!

Stay informed my friends.

Image Source:

https://blokt.com/news/bitcoin-price-short-vs-long-ratio-at-2018-high-monster-short-squeeze-incoming

Follow me: @jrcornel

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Rally 😁 Rally 🤑 Tally 💰

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Hopefully.

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looking at btc/usd short in bitfinex at 1 day the rsi start pointing down... looking from macd it slowly down momentum... but well... hope short squeeze happen... like you post sir!

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Yes, the short positions are staring to decrease, could mean a short squeeze is already under way.

Great boss carry on always

Posted using Partiko Android

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Thanks.

Even with the prospect of consecutive winning weeks, bitcoin remains in a tight range, and one asset management firm has warned that those positioning for a short squeeze should tread carefully.

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Hopefully he's short as well.

Oh yes! A 50% rally would be so appreciated!

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Yes it most certainly would.

Thank you for the updates. Glad to peer you posting again.

I do think we will rally soon....... though I have a feeling it's going to be closer to the end of September, beginning of October.

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That is a ways off still, are you expecting a catalyst around that time?

well that is awaited for a quite a time now lets wait the market move

Typically, you would observe large short positions on other platforms as well, which I haven't yet. Do you have any evidence from other exchanges?

Posted using Partiko Android

When bitcoin falls, the rest of the cryptocurrencies like ethereum, ripple, litecoin, etc are also affected.

To the question in your title, my Magic 8-Ball says:

It is certain

Hi! I'm a bot, and this answer was posted automatically. Check this post out for more information.

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That's what I like to hear.

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That's all i needed to know..

/me refinances his house.