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flamezyz
Jun 12, 2018 8:22 PM

Bitcoin: there might be a better place for your shorts 

Bitcoin / U.S. dollarBitstamp

Description

It's illogical, but as bitcoin keeps dropping people seem to be adding up to their short positions:

This parabolic rises in shorts are often followed by squeezes and painful liquidations of overleveraged traders. Now you can see that the environment is suitable for this as we have clean bullish divergences on major indicators and the price has just landed on a support (previous bottom). Of course the impulsive move down can invalidate them, but i think this is unlikely. If you're looking to short, I'd be more careful now. My longer term view hasn't changed, but the retrace to some higher level close to 7k is reasonable.

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Oh come on

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To make it clear I'm not long, just watching it for fun. I still hold the shorts since 9K

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fractal hmmm

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On Bitmex previous high almost = 1.272 (= 7050)

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previous low*

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Bitcoin margin shorters, Mr Soros please do it already

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Literally ATH

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The question will the move up or down squeeze it

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the question is*

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Volume is getting lower as well

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divergence on a divergence

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looks organic

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This idea is a total failure XD

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Ok not a complete failure, but now we have a relatively low volume pump and bearish div:

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Shorts squeezing as expected

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The top can be already in or we might continue the pump to 7050 (1.272 retrcement + bbands):

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Bear flag/rising broadening wedge target exactly on previous daily low (5920):
Comments
bilalabes
btc is illogical ... well said..... a rise to 8400 was expected instead a drop to 6400+. CBOE futures expired on 13th of june .... maybe after that we can see a small rise .... or cont. to lower
flyinglight
/Users/kristjansild/Desktop/Screen Shot 2018-06-13 at 00.28.40.png
flamezyz
flyinglight
@flamezyz, I am watching the same thing. Actually, it looks like good indicator to notice accumulation - price stands still but shorts go up.
(Sorry, bad link. , Delete it if you you can)
flamezyz
@flyinglight, it is a good indicator, but it's not ultimate. I've been rethinking this whole situation and if I were a big player, I'd want people to short at the bottom so I can go long, right? But if I squeeze the shorts and continue the dump the public will be afraid to short and I won't be able to enter a big position. So, the longs can continue going down and shorts up for some time. At the moment the ratio is 1 and it has more room to go. Historically it's been much lower:
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