Bets on Bitcoin Price Decline Hit 6-Week High
The negative sentiment about bitcoin price news saw the amount of shorts hit a six-week high on Thursday. The BTC/USD small spots on the cryptocurrency exchange Bitfinex hopped to 37,891 – the utmost level since Oct. 15 – and were last seen at 36,996. Particularly, shorts have increased by 95 percentage in the last three weeks, associated BTC’s recent drop to 14-month lows near $3,500.
More outstandingly, the short positions continued raised above 35,000 during BTC’s oversold bounce from $3,500 to $4,400 and scaled to fresh multi-week highs on Thursday. Further, the long-short ratio of 0.73 is prejudiced toward the bears.
The data shows that, despite being so deep into the bear marketplace, retailers appear to be presenting no signs of enervation. As a result, the cryptocurrency may re-enter the recent low of $3,474 as implied in the practical charts.
The bearish sentimentality, however, could soon reach excesses as the short locations are down just 7 percent from the record great of 40,289 that was jumped on Sept. 19. Moreover, the exciting bearish positioning is widely measured a sign that the sell-off is overcooked and often portents a trend reversal.
Therefore, the forecasts of sudden brawny reversal, similar to the one seen on April 12, would improve considerably once the short locations reach record highs.