Get F*cking Long Moment - Bitcoin Shorts Going to Get Wrecked
Updated
Shorts are too comfortable. We are near the same Bitcoin Long/Short Ratio back in April in which we saw Bitcoin go from $6,500 to $11,600 after the epic short squeeze. Yesterday night might have looked like as just a weak bounce but the interesting part was that shorts increased by roughly 2.5, when we dropped from $6,200 to $5,900 and since the unimpressive crawl back to $6,150, another 4k shorts has been added.
Trade active
Not as big of a rally as I had anticipated. Was hoping that we got to 6.7 - 6.8k area by now. It may still go higher but the risk has increased now that margin shorts has come a bit while margin longs have slowly creeped up. With that said, long/short ratio is still favorable for bulls in my opinion.I'd personally close half my position at the current $6,485 level to lower my cost basis and let half of the remaining position ride with tight stop losses.
Trade closed manually
The easiest money has been made. I'd close the remainder of the position or at least the majority of the position and let the remaining 10-25% of the position to run. My peak target is ~7,700 - 7,800 if it makes a run for it. I believe we do have the fuel to get there given that margin positions are still favorable for the bulls. With that said there is an increase downside risk with the RSI on multiple time frames being oversold and the potential of a head and shoulder pattern in development.
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