The Bitcoin crash on Sunday likely wasn't caused by short selling...
Bitcoin tanked hard on Sunday, but it likely wasn't due to short sellers leaning on it.
At least not short sellers from Bitfinex.
Pulling the chart of short positions on Bitfinex we can see that there was no significant increase in their positions over the weekend.
In fact, short positions are still pretty much sitting at their lowest levels in months:
(Source: https://www.ccn.com/bitcoin-price-hit-key-6000-level-end-bear-market)
Interesting, and very surprising...
What does that mean?
For my money, I would have assumed that with prices having trouble busting through the $4,200 resistance levels, short sellers had piled back in and helped drive prices right back down.
However, according to the chart above, that wasn't really the case.
It looks like it mostly was long traders that were feeling bitcoin wasn't going to keep going up, so they started locking in profits.
As they sold, stop losses of other long traders likely got hit.
Resulting in a stop loss crescendo helping crash prices in a very short time.
Where do we go from here?
That is a tough call, but unless that $4,200 breaks in relatively short order the trend is going to favor the bears.
A slow grind back towards the lows is the most likely price action until/unless that $4,200 area breaks.
However, even if we retest the lows and break them, I don't see much downside below $3k and I see significant upside from our current price if we look out 2 years from now.
For that reason, I like buying at any price around the current levels.
Stay informed my friends.
-Doc
Seems like higher lows for now which is good. I thought it was shorts as well but have in mind it could also be shorts on the futures contracts as well over at CME and CBOE...
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Yes, there are other ways to short the crypto markets besides just Bitfinex. Bitmex is another prime example. This chart just shows what is going on with Bitfinex in terms of short positions.
Can you spell: m a n I p u l a t I o n? 😩
I can now.
I think these swings are going to be bigger and bigger due to the ease of trading into stablecoins all over the board now compared to 2017.
Could be. The infrastructure is light years ahead of where it was just 2 years ago.
I like the long call.
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Where to?
$8000 end of 2019
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Works for me!
Same I’m just hoping we get some uncoupling of alts. I’d much rather see steem back at $4 than 8000 BTC.
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Both would be ok with me.
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I'm waiting for a 50MA breakout on the 1 week time frame to buy , it's one of the best indicators around for big investor money coming in, and it signals a reversal in the market.
We haven't gone past the 20MA on the 1 Week timeframe, this is the MA that has been a signal of dump the whole bear market, I would pay close attention to it since it's now at around 4300$ and can, if the support doesn't hold, push us down...
I disagree with you on the "ven if we retest the lows and break them, I don't see much downside below $3k ", we can go down as low as 2500, 1800, 1100, im pointing to 1800$, but like I said I'll only buy on the 50Ma on 1W breakout, why do I think this?? in normal markets the 200MA on the 1W time frame is a strong support and the price only goes through it after bubbles, but once it does we are looking at a drop of 50%... Go look at the dotcom bubble and house market bubble, the price dropped like crazy after it broke...
Even if your numbers are correct, and there is 50% downside from current prices, my statement still holds true when I see possible returns of 10x from current levels within the next 2 years. If you buy and your investment goes down by 50%, it's not fun, but ultimately won't matter if we are going to $30k-$40k within the next 2 years like I believe.
True true, it won't matter we will still both make profit, 40k in 2 years I can see that... I would go for ATH in 2023 at 100k is it too hopefull xD ?
Nope. I could see it. I could also see it happening within the next 2 years. My $30k-$40k call is my base case. Optimistic call says $100k by end of 2020.
As soon as I saw that crash I assumed it was manipulation. I’m not the best trainer but I don’t believe there was any other reason for that correction.
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Yea probably manipulation on both sides. On the way up and on the way down.
To be honest, it seems like we had a clear market manipulation again 😠
What's the reason behind ?
Maybe to show future investors how volatile the market is?
Anyway, have a great day
Tom
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My guess would be manipulation for some to make a quick buck.
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