Bitcoin SHORTS (Pt2) For Your Entertainment (Bullish Signal???)

In our last Bitcoin update we talked about how Bitcoins flash crash can be considered a positive signal for Bitcoin long term. We saw the drop coming, it is easy to call a retrace when momentum is lacking, volume starts to decline and we are facing very strong resistance... So this is no big deal, but nobody expected the drop to be this fast, so why is this happening now?

Who are the market makers trying to trick this time? Bears or bulls?

Let's take a look...


Inverse relation between BTCUSD & SHORTS

We know from experience that each time a flash crash comes for Bitcoin, after long bear action it quickly turns into bull action and we saw just weeks ago how Bitcoin SHORTS decreased by 40%+ in a little more than two weeks.

- Bitcoin -2.24% went down strong, created a higher low.
- SHORTS spiked up, the bears where having their fun.

- As soon as Bitcoin -2.24% decided it needed a corrective up wave.
- SHORTS had their biggest drop since the beginning of their days.


So what comes next?

With SHORTS now near all time high, expect them to go higher a little more, as soon as they reach the top, they might go down and try a new low...

Note: This doesn't mean that Bitcoin will go up or down, I am looking at these points as a signal that combined with additional information can help us better predict where Bitcoin will go next. I love Bitcoin, but in the end, the market will decide its fate.

Beginner tip: Couple this information with your own research and analysis of other amazing / great Trading View members to have a better understanding of what is going on.

Always take it easy, regardless of what is happening and never rush.

Relax, breath deeply and no matter what happens remain calm. Because there is always a second chance... This life is so amazing, that you will have endless opportunities until the day we are no more.

Namaste.

P.S. Alan Masters here... working for you once again.
Have an amazing weekend!

Comment:

Altcoins update (The TRON example): Altcoins have been holding nicely. We have many new open trades for altcoins and you know how bad these were hit when Bitcoin was declining all of these past months.

Now we see Bitcoin go down over $1,000 in a day, yet the altcoins remain strong, not going lower than a few percents. Take the TRXBTC example:

Bitcoin dropping this hard, this fast, would normally sell the alts to the bottom, why are they holding so strong? (comments section below)

Comment:

In my previous article, we were discussing how Bitcoin is bullish long term... Some people differ with this view so I shared a long term chart. This chart only goes back to 2013 (BitFinex).

So here is a long term for BitcoinUSD on BitStamp, all the way back to 2011.

Weekly:

Monthly:

Thanks a lot for the reminder in the comments section.

Namaste.

Comment:

Take a look at these charts:

We are seeing these "waves" become shorter and shorter... What's your take?

Comment:

Here is the drop that we were expecting... Let's see how it goes.

Comment:

The shorts for Bitcoin are decreasing as mentioned here over two months ago. If you look at the main chart above, you can notice a double top coming up on the shorts indicator.

Here, you can see that the shorts have fallen over 30% in the past few weeks, that's a very strong drop, it signals that the bears are weak.

Weekly:

Daily: