Bitcoin Today: Shorts stack up
Price
Monday went into a lateral manner, slightly above 100-days EMA and below 7300 level. The longer the price will hold above EMA, the more chances to gain enough support for the next upward rally. 7430 level stays a resistance, which needs to be pierced to confirm completion of the August bottom pattern and beginning of the next growth cycle. From opposite point of view, inability to break above 7300 during the Monday, talks in favor of strong selling pressure of the 7300 – 7430 zone. So, to reach the next resistance at 8000, Bitcoin will need to gain some fundamental support. From the below, 100-days EMA and 7000 level should play a supportive role in the bullish scenario.
Today forecast
Trading in the 7000 - 7430 zone. Breakthrough above 7430 – bullish signal.
Latest news
Monday went into a lateral manner, slightly above 100-days EMA and below 7300 level. The longer the price will hold above EMA, the more chances to gain enough support for the next upward rally. 7430 level stays a resistance, which needs to be pierced to confirm completion of the August bottom pattern and beginning of the next growth cycle. From opposite point of view, inability to break above 7300 during the Monday, talks in favor of strong selling pressure of the 7300 – 7430 zone. So, to reach the next resistance at 8000, Bitcoin will need to gain some fundamental support. From the below, 100-days EMA and 7000 level should play a supportive role in the bullish scenario.
Today forecast
Trading in the 7000 - 7430 zone. Breakthrough above 7430 – bullish signal.
Latest news
- Shorts stack up
In the light of a rather strange manner of recent bitcoin growth, slow without high volume and momentum, market players start to look for the hints when such growth could come to an end. One of the interesting observations is the rising number of short contracts on future BTC markets.
Briefly from bitcoin.com article by Jamie Redman:
Cryptocurrency markets have shown some strength over the last seven days as many digital assets are up between 3 to 40 percent. At the time of writing, the entire digital currency market capitalization of all 1600+ cryptocurrencies is around 239B USD. The markets look far more optimistic than a few weeks ago but short contracts on Bitfinex order books for BTCUSD future markets, in particular, is nearing its all-time high once again.
Cryptocurrency proponents seem optimistic the bearish trend will end soon, based on the sentiment to be observed on social media, Telegram trading chat groups, and forums. However, looking at future markets on Bitfinex, Bitmex and others show people are betting heavily against BTC’s price going up. BTCUSD short contracts on Bitfinex are slowly approaching the all-time high (ATH) that took place on August 21.
Right now there are 33,408 shorts on the exchange and only 25,974 long positions. Again, either two things could happen: either the shorts bring the price down and bears get their way or lots of short positions will be squeezed which is what happened last April.
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