Confusing Market Situation, Any Idea??
looking at the chart of BTCUSDSHORTS ratio Against BTCUSDLONGS we are seeing that it is pretty much where we should long! because 60 percent of people are in short (on bitfinex).
also longs it self are very low compared to 2018 market(i will add that to this idea later).
so looking at this data and using them as indicator was really helpful to me but in this situation in which bitcoin is just going up and ignoring a lot of things like tether news and overbought conditions on weekly time frame, it is more confusing to me!
it is logical to see a big drop here but there is no sign of such a thing! i think we should wait and see what it is going to happen.
the most likely scenario is that we are going to see upward momentum continue until we see longs rising and falling of shorts then in the middle way of longs and shorts ratio (i mean 50 % of shown chart) market will drop. i dont think market can drop in the favor of majority, it will drop i the favor of minority.
** to bring this chart type this on pair section of tradingview:
BTCUSDSHORTS/(BTCUSDSHORTS+BTCUSDLONGS)
also longs it self are very low compared to 2018 market(i will add that to this idea later).
so looking at this data and using them as indicator was really helpful to me but in this situation in which bitcoin is just going up and ignoring a lot of things like tether news and overbought conditions on weekly time frame, it is more confusing to me!
it is logical to see a big drop here but there is no sign of such a thing! i think we should wait and see what it is going to happen.
the most likely scenario is that we are going to see upward momentum continue until we see longs rising and falling of shorts then in the middle way of longs and shorts ratio (i mean 50 % of shown chart) market will drop. i dont think market can drop in the favor of majority, it will drop i the favor of minority.
** to bring this chart type this on pair section of tradingview:
BTCUSDSHORTS/(BTCUSDSHORTS+BTCUSDLONGS)
Comment:
i've drew a RED horizantal line on the chart. this line is the lowest point of the jun/jul head and shoulder. bulls may have a really big problem to break that line.
there is even a bullish divergence in this chart between long positions and rsi.
and also may be a falling wedge.
all of this are telling something to me: LONG!!! but it is really tough time to long! we are going up for almost 3 months! there should be pull back. but we should not short until seeing some signs of bears. to be bearish i thing we should form a lower low on the daily time frame which is 5000 usd level on bitstamp chart.