Interpreting Long/Short Ratios in Futures Trading█ Interpreting Long/Short Ratios in Futures Trading: Beyond Bullish and Bearish
For beginner traders, the long/short ratio in futures markets can seem like a clear-cut indicator of market sentiment. Many assume that a high ratio of longs to shorts means the market is bullish, while more shorts than longs signals a bearish outlook. But in reality, this interpretation is oversimplified and can lead to misguided trading decisions.
In this article, we'll break down the nuances of the long/short ratio in futures trading, explaining why positions on the “short side” don’t always indicate a bearish stance and how traders can better interpret these ratios for a well-rounded perspective.
█ Understanding the Basics: Futures Trading Is Not Spot Trading
In the futures market, every trade requires a buyer (long position) and a seller (short position). For each person going long, there’s a counterpart going short. This zero-sum structure means that, by definition, there’s always a balance between longs and shorts. However, the reasons why traders take long or short positions vary widely—and not all of them are directional bets on price movement.
█ Why Not All Shorts Are Bearish (And Not All Longs Are Bullish)
Let’s dig into why a trader might take the short side without actually betting on a price drop:
⚪ Hedging: Some traders go short to hedge an existing position. For instance, if they already hold a large amount of Bitcoin in the spot market, they might take a short position in Bitcoin futures to protect against potential downside risk. This doesn’t mean they’re bearish on Bitcoin; they’re just managing risk.
⚪ Arbitrage: Some traders take short positions for arbitrage purposes. For example, they might go long in one market and short in another to profit from small price differences without having any directional view on Bitcoin’s future price. Their short position is purely for balancing and not a bet on falling prices.
⚪ Market Making: Market makers provide liquidity to the market by taking both long and short positions. Their goal isn’t to profit from price movements but to capture the spread between the bid and ask prices. They don’t have a directional view—they’re simply facilitating trades.
⚪ Closing Long Positions: When traders close long positions, they effectively create a new short transaction. For instance, if a trader decides to exit a long position by selling, they’re adding to the short side of the market. But this action doesn’t necessarily mean they expect prices to drop—it could just mean they’re taking profits or reallocating their portfolio.
█ Interpreting CoinGlass Long/Short Ratio Charts: Volume vs. Accounts
Let’s look at the long/short ratio charts on CoinGlass as an example. CoinGlass provides two main types of ratios:
⚪ Volume-Based Ratio: This chart shows the volume of capital in long vs. short positions. For example, a high volume in longs might suggest that large players are buying into Bitcoin. However, it’s important to remember that some of these long positions could be from market makers, hedgers, or arbitrageurs, who may not expect Bitcoin to rise. The volume itself doesn’t tell us why they’re in these positions.
⚪ Account-Based Ratio: This chart tracks the number of accounts on each side (long vs. short) on exchanges like Binance. A higher number of accounts on the short side doesn’t mean all those traders are bearish. Many could be taking short positions to balance other trades or hedge risks. They’re not necessarily expecting Bitcoin to decline; they’re just managing their positions.
█ Example Analysis: Misinterpreting Long/Short Ratios
Imagine you’re looking at a CoinGlass chart that shows an increase in long volume around November 5th. A beginner might see this and think, “Everyone’s bullish on Bitcoin!” But as we discussed, some of this long volume could be non-directional. It could include positions taken by market makers providing liquidity or hedgers who are long on Bitcoin futures but have a corresponding short in another market.
Similarly, if you see a spike in the number of short accounts, don’t automatically assume that everyone expects Bitcoin to fall. Some of those accounts might just be managing risk or taking advantage of arbitrage opportunities.
█ Avoiding the Pitfall of Overinterpreting the Long/Short Ratio
The biggest mistake traders make is interpreting the long/short ratio as a direct indicator of market sentiment. Remember, every trade has a counterparty. If there’s a high volume of longs, it simply means there’s an equal volume of shorts on the other side. The market’s overall sentiment isn’t always reflected in this ratio.
Instead of relying solely on the long/short ratio, consider these other factors to form a clearer market view:
Market Sentiment Indicators: Use sentiment tools, news, and social media sentiment to understand how traders are feeling beyond just positions.
Volume Trends: Look at overall market volume to see if there’s conviction behind the moves.
Context and Price Action: Interpret the ratio in the context of price action and recent events. If there’s a strong bullish trend, a higher long ratio might reflect confidence in the trend rather than simply volume.
█ Conclusion: A Balanced Perspective for Smarter Trading
Understanding the long/short ratio requires a more nuanced perspective. Just because the “longs” are up doesn’t mean everyone’s bullish—and just because the “shorts” are up doesn’t mean everyone’s bearish. The futures market is filled with diverse participants, each with unique motives, from hedging and arbitrage to liquidity provision.
By looking at these ratios with a balanced view, traders can avoid common pitfalls and interpret the data more accurately. Trading is about context and strategy, not just numbers on a chart. So, next time you’re checking the long/short ratio, remember: there’s more to it than meets the eye.
█ Final Takeaway: Focus on Context, Not Just Ratios
The long/short ratio can be a helpful tool, but it’s only one piece of the puzzle. Use it in combination with other market indicators, and always consider the motives behind trades. By doing so, you’ll make better-informed trading decisions and avoid falling into the trap of oversimplifying complex market data.
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This is an educational study for entertainment purposes only.
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LONGSHORTRATIO
EGLD/USDT Elliott Wave CountEgold verry probably to bounce for an x wave and than to go up
We have an W wave expended flat corrective pattern and now an X wave also expanded flat corrective pattern.
Triangle in 4th wave from the c wave from X wave.
If you like my analysis give a like please!
Also subscribe for futre counts!
Short for a 5th wave and than long. Until next update short for the 5th wave!!
Thank you and goo luck!
Extremely Low Shorts To Longs RatioThis is insane, 3.26% of Open interest in Bitfinex exchange are shorting bitcoin right now. This is extremely low as you know it is a ratio. It can not go below zero it can just be near zero. This is -in my opinion; an indication of extreme optimisim and will probably result in a powerful long squeez. To get this chart use this formula:
BITFINEX:BTCUSDSHORTS/(BITFINEX:BTCUSDSHORTS+BITFINEX:BTCUSDLONGS)*100
BTC- Quick derivative analysis$8 billion liquidations were triggered when BTC briefly crashed to 31k on Wednesday,
This morning, over $7.5B in Bitcoin open interest was wiped out, bringing total OI back to levels last seen in early February.
Right now, oversold signals can be seen across the board and I think this is exactly what we need to shake out weak hands and over-leveraged positions.
BTC - RETRACEMENT OCCURREDwe are exactly on the 21MA daily. Many are scared now, but until we hold this level, we can consider the movement as a normal and healthy retracement and the uptrend can continue. It was too violent to be "real". Also, long/short ratio (adjusted for the holders) reached levels lower than those during the 13th of March due to Covid today. Too much. I still think that a retest of the 12k-14k region will occur, but not immediately, not in November. I believe we still have some upward profit to squeeze.
As usual, I am operating exactly as I write. If you follow, ofc set a tight stop loss, but let some freedom of move (16.6k in my case) as this is a risky trade. No risk no gain. But calculated risk, always.
BTC- PayPal hype could be as big as BTC ETF hypeThe drop to 9.2k-9.5k never happened and the recent consolidation above 10k demonstrated bull's conviction.
I expect the incoming shallow pullback and it will be even more bullish if weekly candle can close between 12k-12.5k.
First MicroStrategy, then Square and now PayPal.
PayPal supports 26 millions merchants and has 300 millions + customer accounts. Its announcement to support crypto payment couldn't come at better time.
Moreover, JPMorgan jumped on the bandwagon by making optimistic prediction of BTC's upward price potential this week.
Other on-chain indicators also point to the increase of whale hodlers.
Furthermore, institutional demand continues to go up while exchange reserve continue to drop.
Overall, I think BTC is making a steady progress and we are finally getting one step closer to break through the 3 year consolidation.
Longs; savior or killerLook at the ratio between longs/short over time and take a look at Bitcoin over same time.
In my opinion we have legit bottom at 4k area, built in march 2019.
From 4k and up to 14k, there is a great mix of real demand, and lot of long- and short gambling.
In this range of price, we can se four bigger actions (compared BTC with Long/Short ratio) and how price reacted to that.
Bitcoin is tangled between different MA's, specially under the daily MA200 which is moving towards a potential death cross with daily MA100. Have Longs really accumulated well or have they misjudged the situation a bit? How will they act in a potential setback?
Let me know what you guys think.
Perfect bull flagETH is currently in a bull flag that is holding up very neatly. BTC is in a similar bull flag that is also holding up perfectly. We can see on the smaller time frames that ETH is really eager to break out on the upside. Everytime BTC goes up a little ETH goes up way more. The ETH bull flag has an upward trend whereas the BTC flag has a flat trend. (I don't how how to add both charts in this idea sorry, tips welcome!) We're just waiting for BTC to make a move towards the upside of the channel and then out of it, allowing ETH to shoot up too. Check out this idea to see that history is in our favor for a breakout. The BTC LONG/SHORT ratio is also very much in our favor! Let's see what the whales have in mind for us.
Bitcoin Price Action Update (day 351)Disclaimer: If you are primarily interested in copying other people’s trades then this is not for you. However, if you are willing to put in the work that it takes to learn how to trade for yourself then you have found the right place! Nevertheless please be advised that you can give 10 people a profitable trading strategy and only 1-2 of them will be able to succeed long term. If you fall into the majority that tries and fails then I assume no responsibility for your losses. What you do with your $ is your business, what I do with my $ is my business.
Sawcruhteez Strategies: Comprehensive Trading Strategy - Consensio | Comprehensive Trading Process | How to BUY THE DIP | Advanced Dollar Cost Averaging Methods
Consensio: Fully Bullish
Patterns: Start of a 4h bear channel
Horizontals: R: $11,636 | S: $11,341
Trendline: Parallel Channel
Parabolic SAR: In a recent podcast Tyler and I analyzed the way that Trading View is calculating the SAR. We have referred to original Welles Wilder documentation and determined that Trading View is not calculating it correctly based on the original formula. Therefore I am using the original calculation which puts the Weekly SAR at $13,880 instead of $10,452 which is where Trading View puts it.To learn more about the Parabolic SAR calculation click here and stay tuned for our solution. We plan to provide an alternative script and make it available for free on TV within the next week.
Futures Curve: Contango with 3.96% spread
Funding Rates: Longs pay shorts 0.0259%
BTCUSDSHORTS: I am no longer going to track the BTCUSDSHORT ticker which gathers data from Bitfinex. That is due to the ability to claim a position on that exchange opposed to closing. This has huge effects on how the long:short ratio is calculated. So much so that I no longer think it is a good metric to track. Click here to learn more about claiming vs closing and how it affects long:short date.
TD’ Sequential: Just got a weekly combo 13 and aggressive 13. Weekly A13 called the bottom.
Ichimoku Cloud: Weekly wicked off the top of the cloud perfectly.
Daily bearish TK cross above the cloud. 4h no trade zone.
Relative Strength Index:
Average Directional Index: Weekly is testing major resistance which indicates an exhausted trend.
Daily rolled over, if it can roll back up > 20 then it would be a strong sign of continuation. Until then it is a strong indicator of continued consolidation / correction.
Price Action: 24h: +2.32% | 2w: +6.28% | 1m: +50.33%
Bollinger Bands: Testing daily MA
Stochastic Oscillator: First weekly sell signal since December 2017
Summary: The most important technical to me right now is the weekly high volume shooting star that we got last Sunday. Shooting star and dragonfly dojis are generally my single most important indicator or a short - medium term reversal. That is especially true when on high volume.
Last week’s bearish wick and above average selling volume are the main reasons why I am expecting a major correction over the following weeks - months.
That being said right now is the time to pay very close attention. If we can breakthrough the top of the bear channel and then get back above $12,000 then all signs would be a go for continuation.
I am not expecting that but I am preparing for it. I have a strong bearish bias due to the high volume shooting star and therefore I have been selling spot and opening shorts over the past week. If the current market structure breaks to the upside then it is essential I am prepared to close shorts and reopen longs. Again I do not expect that but I do want to prepare for it.
As it stands I am confident that we will get another leg down to retest four figures and I have been positioning myself accordingly. That being said I am diligently preparing for alternative outcomes.
Strong opinions loosely held
Bitcoin Daily Update (day 197)I believe that it is possible to beat the market through a consistent and unemotional approach. This is primarily achieved through preparing instead of reacting. Click here to learn more about how I use the indicators below and Click here to get my complete trading strategy! Please be advised that I swing trade and will often hold onto a position for > 1 month. What you do with your $ is your business, what I do with my $ is my business.
My most recent Bitcoin Bubble Comparison led to the following predictions: 1 day - 28 days = < $5,750 | bottom prediction: $2,860 by 10/30
Previous analysis / position: “BTC’ looks like it has found support and should bounce to the $6,750 area before continuing the downtrend. However, alts are currently breaking down and there is a good chance that they drag BTC’ down with them.” / Short ETH:USD. Took profit on 33% of position improving my average cost basis to $317.37 per ETH.
Patterns: Descending triangle
Horizontal support and resistance: S: $6,150 - $6,180 | R: $6,290
BTCUSDSHORTS: Appears to be pulling back and forming a lower high.
Funding Rates: Longs pay shorts 0.01% (first time in a while it hasn’t been shorts paying longs)
12 & 26 EMA’s (calculate % difference): 12 = -3.87% | 26 = -5.85%
50 & 128 MA’s: 50 = -8.96% | 128 = -11.55%
Volume: Still waiting for volume spike to set off the next move
FIB’s: 0.886 = $6,137 | 0.786 = $6,383
Candlestick analysis: Inverted hammer then a doji now a hammer is forming. Indicates indecision and upcoming volatility
Ichimoku Cloud: 4h C-Clamp
TD’ Sequential: Current candle will price flip if it closes > $6,181. Red 9 on the 4 hour.
Visible Range: Currently testing point of control (POC) with 2m - 1y lookback.
BTC’ Price Spreadsheet: 12h = +/- 0 | 24h = +/- 0 | 1w = -6.52% | 2w = -10.34% | 1m = -0.63%
Bollinger Bands: After testing the bottom band a return to the MA at $6,739 is to be expected
Trendline: N/A
Daily Trend: Chop
Fractals: Up = $7,426 | Down = $5,866
On Balance Volume: Moving down with price / no div’s
ADX: Bear trend
Chaikin Money Flow: Pulling back from resistance
RSI (30 setting): W = 48.53 | D = 43.88
Stoch: Bearish re cross on weekly. Buy signal on daily.
Summary: There is nothing to do at this point other than to wait. Ideally we will get a sharp spike to $6,700 before breaking down. A shakeout before the breakdown would speed up the process and allow for some very good short entries.
If that doesn’t happen then we will likely continue to consolidate for days - weeks. Prolonged sideways action can drive traders up a wall and/or put us to sleep. Do not let that happen to you. Set price alerts and regularly check in on the charts.
If we get a bounce then be ready to short it. If we continue to consolidate then develop a plan for what you will do if we do not get a bounce. My suggestion is to key an eye on EOS . I am going to be shorting it against BTC' and ETH in the coming days/weeks.
Bitcoin Daily Update (day 181)I believe that it is possible to beat the market through a consistent and unemotional approach. This is primarily achieved through preparing instead of reacting. Click here to get my complete trading strategy and click here to learn more about how I use the indicators below! Please be advised that I swing trade and will often hold onto a position for > 1 month. What you do with your $ is your business, what I do with my $ is my business.
1 day - 1 week: short squeeze/test top of triangle at $7,500 -$7,650 (low confidence prediction) | 1-2 weeks: Retest $6,000 | 1 month predictions: < $5,750 by 9/24 | bottom prediction: $3,000 by 10/30
Previous analysis /position: Couldn’t remember the last time I saw the technicals split so evenly. Discussed the importance of have the discipline to sit out when you are itching for action and there are not any good trades on the table/ Sidelines
Patterns: Descending triangle
Horizontal support and resistance: S = $6,634 | R = $6,800
BTCUSDSHORTS: Finding support at 35,500 - triple bottom on 1 hr' chart
Funding Rates: Shorts pay longs 0.0021%
12 & 26 EMA’s (calculate % difference): 12 = +2.09% | 26 = Being tested for support
50 & 128 MA’s: 50 = -3.26% | 128 = -9.20%
Volume: Decreasing volume as price rises.
FIB’s: 0.618 = $6,893 | 0.5 = $7,166
Candlestick analysis: Yesterday had a hanging man at resistance. Today is forming a doji.
Ichimoku Cloud: Cloud and Kijun waiting at $7,150 should be strong resistance. C clamp on weekly.
TD’ Sequential: Weekly R4. Daily G5
Visible Range: Point of control + high volume node at $6,700 (5 day lookback). Has broken through HVN’s on 1 day lookback.
BTC’ Price Spreadsheet: 123h = +0.82% | 1d = +0.37% | 1w = +7.40% | 2w = +8.44% | 1m = -15.22%
Bollinger Bands: Top of daily band acting as strong resistance as expected. Has me rethinking my short squeeze prediction over the next week.
Trendline: Descending triangle
Daily Trend: Choppy
Fractals: UP = $7,153 | DOWN = $6,217
On Balance Volume: Looks to be creating a lower high on the weekly. No div’ on daily.
ADX: Weekly ADX is starting to flatten out. Daily is threatening to cross 20. As far as I am concerned the two options are: 3+ months of continued consolidation | capitulation to < $4,000. The ADX is starting to point towards the former option.
Chaikin Money Flow: Bull div' in daily and weekly
RSI (30 setting): W = 49.41 | D = 48.34
Stoch: Just made bullish cross above 20 on weekly. Daily still trending up. %K angling down and threatening to cross. Has failed to do so the last three times.
Summary: The outlook is still far too neutral for me to take a position on BTC'. Daily BB acting as strong resistance while the CMF' has significant bull divergences. Are the shorts finding support and getting ready to create a new all time high or are we going to rally off the weekly reversal candles?
If you are patient over the next few days/weeks then I strongly expect a favorable position to present itself. If we rally to $7,000 + then it will be a great selling opportunity. If we breakdown $6,500 support then it could also be a great selling opportunity.
In the meantime I am keeping a close eye on ETH:USD. There is a bear flag on the 4 hour chart with a target of $111 which is right in line with horizontal support. Furthermore the ethusdshorts’ are close to equilibrium, until btcusdshorts’.
Bitcoin Daily Update (day 178)I believe that it is possible to beat the market through a consistent and unemotional approach. This is primarily achieved through preparing instead of reacting. Click here to get my complete trading strategy and click here to learn more about how I use the indicators below! Please be advised that I swing trade and will often hold onto a position for > 1 month. What you do with your $ is your business, what I do with my $ is my business.
New Projections: 1 day - 1 week: short squeeze/test top of triangle at $7,000 -$7,400 | 1 week: Retest $6,000 | 1 month predictions: < $5,750 by 9/24 | bottom prediction: $3,000 by 10/30
Previous analysis /position: Started to feel very uncomfortable about short sellers nearing ATH’ and lack of selloff following ETF rejection / Capitalized on the rest of my ETH:USD and ETH:BTC shorts. Using 5X leverage the ROI' was > 100% for those positions.
Patterns: Descending triangle + bear flag
Horizontal support and resistance: R: $6,650 | S: $6,450
BTCUSDSHORTS: Hanging man from two days ago has marked the top so far. Return to 12 EMA is strongly expected before another rally.
Funding Rates: Shorts pay longs 0.0462%
12 & 26 EMA’s (calculate % difference): 12 = currently acting as support | 26 = -0.4%
50 & 128 MA’s: 50 = -5.92% | 128 = -12.44%
Volume: local high is still on the shooting star candle from two days ago. That wick should act as strong resistance.
FIB’s: 0.618 = $6,508 | 0.5 = $5,882
Candlestick analysis: Daily doji/hanging man
Ichimoku Cloud: Breaking through Tenkan-Sen. Cloud and Tenkan-Sen are waiting at $7,100
TD’ Sequential: G2 traded > G1 momentarily and quickly pulled back.
Visible Range: Point of control over last day is $6,520 | POC over last 6 months = $6,368
BTC’ Price Spreadsheet: 12h = +/- 0 | 24h = +1.08% | 1w = -1.06% | 2w = +4.25% | 1m = -15.54%
Bollinger Bands: Back above daily MA. 3 day MA = $6,820
Trendline: Descending triangle and bear flag
Daily Trend: Bullish
Fractals: 2 up = $6,616 | down = $6,228
On Balance Volume: Slightly bear div’ with lower low and lower high in OBV.
ADX: Weekly still creeping up with bearish cross on DI’s. Daily pulling back hard and going for a 20 retest while +DI makes bullish cross with -DI
Chaikin Money Flow: Bull div’ on weekly. Daily going for -0.15 retest. If breaks through then high probability it will re test 0.2
RSI (30 setting): W = 48.92 and appears to be creating double bottom | D = 46.41
Stoch: %K keeps pulling back and threatening to cross %D. Last two times failed, will third time be a charm?
Summary: I feel much more comfortable observing the next few days/weeks from the sidelines. Trading is about finding high probability situations and quickly adjusting when things do not go as expected.
I was very confident that we would re test $6,000 this week and breakdown $5,750 if/when the ETF’s where denied. When that didn’t happen I was forced to adjust my position. I started by covering 20% and tightening the stop losses.
Based on how hard we fell from $8,250 and the btcusdshorts' being near their ATH’ I have decided to close the rest of my short positions. I have also changed my short term outlook and now I am expecting a short squeeze to $7,000 - $7,400 before we re test $6,000.
I am not nearly confident enough in that projection to open a long, instead I will be waiting to re open my short at those levels. That could mean that I have to wait a couple weeks before re entering and it could also mean that I miss out on a big move if we sell off from here w/o getting a short squeeze.
The ability to be patient and be okay with missing out on a move are two of the most important attributes of a profitable trader. If you are not in a position and can feel the itch to get into action then this could be a great chance to work on the intangible characteristics of being a trader!
Bitcoin Daily Update (day 175)I believe that it is possible to beat the market through a consistent and unemotional approach. This is primarily achieved through preparing instead of reacting. Click here to get my complete trading strategy and click here to learn more about how I use the indicators below! Please be advised that I swing trade and will often hold onto a position for > 1 month. What you do with your $ is your business, what I do with my $ is my business.
1 day: $6,000 retest (any day now) | 1 week: break down $5,750 | 1 month predictions: < $5,000 by 9/5 (may need to adjust) | bottom prediction: $3,000 by 10/30
Previous analysis /position: Alarmed by divergence in weekly CMF’ and the buy signal on the 3d stoch. Still felt confident in the mounting resistance and felt that a good risk:reward short sale was on the table (specifically once bear flag breaks down) / Short ADA:BTC | ETH:USD | ETH:BTC
Patterns: Bear flag forming after triangle breakdown
Horizontal support and resistance: S: $6,350 | R: $6,436 - $6,480
BTCUSDSHORTS: Going for a retest of the all time high. Something to keep a very close eye on.
Funding Rates: shorts pay longs 0.0561%
12 & 26 EMA’s (calculate % difference): 12 = currently being tested for resistance | 26 = -3.41%
50 & 128 MA’s: 50 = -6.85% | 128 = -13.69% and starting to angle downward
Volume: Daily still well below MA. 4 hour had 2X average volume on recent sell off, and is declining on bounce. Hourly had roughly 4X volume on sell off.
FIB’s: 0.618 = $6,500 | 1 = $5,966 | 1.618 = $4,422
Candlestick analysis: Weekly hammer. Daily candles are showing a lot of indecision. Reversal candles provided a bounce on August 17th but it immediately retraced.
Ichimoku Cloud: Fully bearish. Watch closely for price to breakthrough Tenkan-sen as a sign for a reversal.
TD’ Sequential: R3 = R2 on weekly | 3d just made bullish price flip | R2 = R1 on daily | 12h just had bearish price flip | G2 briefly > G2 on 4h
Visible Range: Point of control over last 6 months is $6,377 and that is a crucial area of support or resistance (depending what happens in the next couple days/hours). Gap at $5,000 is begging to get filled before this bear market ends.
BTC’ Price Spreadsheet: 12h = +2.01% | 24h = +/- 0 | 1w = +3.9% | 2w = +2.53% | 1m = -12.04%
Bollinger Bands: Daily MA at $6,500 should be strong resistance
Trendline: Bear flag
Daily Trend: Chop
Fractals: Two up fractals at $6,593 indicates strong resistance. Two down fractals at $5,952 indicates strong support.
On Balance Volume: Weekly bull div’ + double bottom. No div’ on daily.
ADX: Weekly ADX is creeping upward while +DI is starting to angle downward. Daily ADX is flattening out after forming lower highs and lower lows.
Chaikin Money Flow: Weekly CMF’ has a very significant bull div. Could also indicate overbought conditions.
RSI (30 setting): Weekly = 48.84 | Daily = 45.21
Stoch: %K crossing below %D on daily was only a fakeout. %K starting to diverge after making bullish cross on 3d. Still pulling back on weekly after making lower high.
BTCUSDSHORTS
Summary: The short sellers approaching an all time high and the current rates they are paying is making me feel uncomfortable with the leverage shorts that I am holding. Not to mention the beautiful weekly hammer candle that recently close.That has made me seriously consider closing my positions for the since time since they were opened.
However, it still feels premature. Last time the short sellers made an ath’ they continued to rally for 4-5 days. There is a serious cluster of resistance on top of us and instead of closing out I am going to be adjusting my stops. For BTC I am looking at $6,650 - $6,850. For ETH $326 makes a lot of sense and 0.051.
If you are not in a position then I would wait to sell pump if/when we get short squeeze.