Bitcoin appears to have somewhat stabilized around the mid-$3000 range, while the market seems to remain slightly bearish. However, looking at the amount of shorts currently, could we be looking at a Bitcoin rally in the coming weeks or will the price go down… again?
The amount of Bitcoin shorts currently suggests that bears are beginning to slow down. Currently, BitFinex shorts are sitting at 22,400. The last time Bitcoin shorts were this low was in November 2018.
November 2018 saw Bitcoin shorts just under 20,500. Does this mean bulls are gaining strength and we could see a push upwards soon?
Read more: Will Bitcoin recover in 2019?
Ironically, within the space of one month, shorts had doubled to 42,500.
One thing to note is that when the Bitcoin shorts hit a low in November 2018, the price of Bitcoin nose-dived from roughly $6,350 to $3,400. So in actual fact, looking at the previous market moves, we could be looking at another potential dump in price, which could see Bitcoin shorts perform a similar pattern as previously seen.
The lack of shorts has done little to push the price of bitcoin up, as bulls don’t appear to be applying much pressure at this stage. Perhaps another leg down could see shorts FOMO in to a selling opportunity and testing new lows for BTC in 2019
La entrada Shorts on Bitfinex lowest level since November – What does this mean? se publicó primero en ELEVENEWS.