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CryptoTrendy
Jun 21, 2018 4:01 AM

A quick understanding of BTC LONGS/SHORTS analysis 

Bitcoin / DollarBitfinex

Description

For those comparing last accumulation phase around (6.4k-7.5k) in early April where we ended squeezing shorts opened on support, this phase looks pretty different :

- Consolidation lower (bearish)
- Closed below previous swing low (6425) on big TFs (bearish)
- Shorts are decreasing (not bullish)

As I always say, the amount of longs or shorts opened doesn't matter. What matters is the comparison of the opening/closing of longs/shorts AND the price action.

If, for example, you have a bunch of shorts opening but price doesn't manage to break support, bears are exposed to a short squeeze (bears will be forced to close their shorts, thus buy back at market price, pushing the price even higher).

But if, for example, longs are opened and price goes up, this is ok because momentum is in favor of bulls and bears will have a hard time pushing price down.

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Comments
mick_c
thx for taking the time out and sharing this.
MilkBread
nice work on whipping this up. was getting tired of the comparison! haha
FritzWagner
Msparky
How do you obtain your data? how do you know shorts are decreasing (covering) ? would say we are getting ready for a sell off?
milobowman
@Msparky, there's an indicator on tradingview. search for shorts, you'll see a few.
Msparky
@milobowman, Do you think the short interest have increased? really
milobowman
@Msparky, on the 1D timeframe, shorts clearly increased significantly 3 days ago. you can also see who's trading on margin (longs vs shorts) by clicking on indicators and searching for 'bitfinex BTC margin traders'.
Accumulus_Trading
Some good gear here dude thx
UnknownUnicorn1786844
i tell you whats left to squeeze, around 25k short positions
UnknownUnicorn1786844
@kimlongun, but anyhow, nice explanation! i think it will pump soon, though not as much as in april. 7500 is realistic
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