It is interesting to look at the BITFINEX:BTCUSDLONGS and BITFINEX:BTCUSDSHORTS on this down move. The significant drop in leveraged long positions suggests that this is a profit taking move. Those that were in leveraged long positions are losing faith in a new ATH any time soon. They are getting bored. The corollary to this is that a further move down is not as likely to trigger a massive forced liquidation event since there are fewer leveraged positions.
My gut tells me no crash is imminent; but no big moves either. It could remain quite boring.
Yes, I as well find this interesting.
Watching as many sources trying to see where or why people are claiming market manipulation. So far my findings are null as expected. But nonetheless have come across a few useful tools for making educated entries milling around older-current posts.
BlueJayBird
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So, this symbols indicates how much BTC there are in leverage?
norok
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@BlueJayBird, yes, on the Bitfinex exchange. Other exchanges will have different numbers but looking at one exchange's data should give an idea of traders' current leverage sentiment
@BlueJayBird, You chart there looks great. It should give you useful information to make decisions. I would not overcomplicate it with studies.
The lines themselves ARE the indicator. You can use the line of LONGS or SHORTS to determine if traders are high/low leveraged and then refer back to the price of Bitcoin itself to know if it is overbought/oversold.
In trading... very often less is more!
BlueJayBird
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@norok, Ok. Thank you very much for the advice (and you're insight on LONGS and SHORT, it's really good). By the way, if you click on the image you can use the indicator if you like. Later!
Watching as many sources trying to see where or why people are claiming market manipulation. So far my findings are null as expected. But nonetheless have come across a few useful tools for making educated entries milling around older-current posts.