Longs vs. Shorts, Important support level soon, will it hold?

I've been studying Long/Short for guidance on where (or if) Bitcoin will rebound.

The following is my opinion based on what I perceive. I welcome contrary, corrective and constructive points of view. None of this is financial advice.

At this time there is an obvious bias towards the shorts. We should have confirmation as soon as Jan 11.

In summer 2021 when we turned our bias more towards short positions, long positions declined as sentiment pivoted that direction. Interestingly, there was not an immediate shift towards short positions as the market attempted to determine which direction the market was headed. The bottom was accented by a spike in short positions.

This past summer we broke through an upper support level , touched the bottom upward trendline and bounced back up. If we do not do so here, then likely we will see a further capitulation.

Comment: Here we go?


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