Shorts stacking while btc trades in limbo of next moveI am very hesitant to short anymore what with the skyrocketing short positions. The long positions remain higher - BUT - since the 7th they've gone up a mere 3k from 43 to 46k whereas shorts have skyrocketed from 1,500 to 19,000 in the same time frame and remain very high. Some may be using this as an indicator to give further credence to taking their own short position, however I am worried about a potential short squeeze the higher up they go. If its liquidity that moves markets and massive sell-side liquidity is building, could that not alter the very course of bitcoin at least to an extent?
I don't know what is going on rn and therefore am limiting my trading to essentially scalps. I am wondering if this is a case of, everyone caught on that price was going to dump tremendously and thus the market is reversing course to take out as many shorts as possible. Perhaps even getting ready to form an uptrend now where there was supposed to be downtrend continuation.
I don't like it one bit, having had a bearish outlook until we get to the lower 20s with what I have estimated to be perfect very low buy targets set on alt coins. It is possible that push to $38,500 marked the last local high before btc cascades downwards like a waterfall. But as price action unfolds and we continue to look at all the little clues along the way, we have to be willing to continuously re-evaluate and readjust our expectations.
Right now mine are in limbo, much like the price of bitcoin.
