Lots of new shortsI would not call this recent move up a "short squeeze" despite the sudden inflow of margin shorts. There are still roughly 3 times the number of leveraged longs and steadily increasing. Traders still see this dip off the ATH as a "buying opportunity" and have not been liquidated en masse yet.
BTCUSDLONGS trade ideas
BTCUSD LONGS at record ATHWhile BTCUSD Shorts continue to rise, it is interesting to notice that BTCUSD Longs are at record ATH matching Dec 2019 and Feb 2020.
BTCUSD continues to remain undecided. It has been a month where trades are becoming unworthy if not too risky. Alts have lost more than 75% of this years ATHs, yet Alts don't seem to nudge on positive announcements either as traders are all waiting for a confirmation from BTC.
So what does this mean? Up or down?
1) Eventually one side of the margin traders gonna get burned; it is a clear battle between the bears and the bulls.
2) Any trade has got to be a hit and run, if at all to be entered. Anytime one sees a red candle, panic takes over. There's no maintained uptrend whatsoever.
Personally, I'd bit the farm on BTC going north from here. And therefore exchanged my USDT to BTC. If BTC goes down, I won't mind as I am still holding BTC. If BTC goes north, I am happy. And would consider swinging it if an opportunity proves worth taking the risk.
Feel free to express your thoughts, but make sure you DYOR first and foremost.
Where Are All The Long Bulls? (Dec 30th 2020)It seems suspect to me that everyone is screaming that bitcoin will go to $300k yet on the long side its at 2 year lows since 2018. Something is up... Shhhhhhhhhh
I think the longers can see a continued downward trend and then a quick rebound for one last leg and then maybe find a floor to start building off of for what 2021 will have to hold for us. Watching and waiting! See you on the other side of the rainbow with a pot of gold.
Thanks for tuning in :) Disclaimer, anyone in the trade needs to do their own due diligence and decide what is right for YOU. My charts can be wrong at any time and it's very important that you have your own strategies and plans in place. I run this channel for my own educational purposes of learning to trade, and I will never be 100% right, so please do not let me confirm any bias for you! (Dangerous to do so, stay safe and remember the basics & rules of risk assessment.) Expect the unexpected and happy trading!
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.
Sentiment du marché sur bitfinexLe 1er graphe permet de voir le sentiment général du marché. Il correspond à la somme des positions LONGS - SHORTS sur BITFINEX.
Ca donne simplement une appréciation du sentiment du marché à l'instant t.
Le 2e graphe correspond aux positions en LONGS du marché sur BITFINEX
Le 3e graphe correspond aux positions en SHORTS du marché sur BITFINEX
Le 4e graphe correspond au prix du BTC sur BITFINEX
Les traits verticaux correspondent au moment où j'ai check la tendance.
Les flèches correspondent à un mouvement basés sur une hypothèse pure.
BTC LONGS ARE TOO HIGHHello, the short term rise scenario has played out (1st idea linked below). However, Shorts are at the all-time lows (2nd idea) and Longs are at a possible reveal point, as you can see from the chart. Most crowded trades are usually not the best. Next days and weeks will be crucial, but I still expect a correction to wipe out all those longs, before the bull run can start.
In the long term I am extremely bullish as we are approaching the breakout to the downside of this triangle, which always signaled a bull run after past halvings. There is also the chance we already broke it, if a more aggressive trend line is drawn.
Longing is the only optionLet's see if a 144 EMA is a support strong enough to make it bounce back up.
MACD looks bullish even if it took him long time to get to this point.
RSI is really low which is another bullish indicator.
BTC price is getting lower. I wouldn't be suprised to see a wall of orders at 10k and 9600 which is target we have to reach before BTC can get up in price.
BTC - ANOTHER BULLISH SIGNAL FROM THE NUMBER OF LONGSHello, incredible to see how the lines I drawed months (maybe a year ago) acted as resistance and hopefully will act as support now. We are in the area separating the bull fro the bear market so, if it is the case, we will see a second up leg in the longs, meaning that BTC will go up. This is also in line with the indication of my "secret indicator" (next idea).
BTC - LAST TIME WE HAD THIS LOW VALUE, PRICE STARTED TO DECLINELast time the total # of positions in the market (both long and short,with just bitfinex considered) was that low was July '19 and btc started its decline from 13k to 6.5k (the covid happened).
True that thera has been a serious outflow of btcs from exchanges in the last quarter and the data can be affected by that, but still the value is really low (wouldhave never expected that after a halving!)
BTC - INDECISION IS KING BUT VOLA IS LOW. WHAT TO DO? OPTION#1Not even the long/short indicator (usually a contrarian indicator) gives us any insight about the next direction.
Its level is 1:1 (excluding hodlers that are long by definitions and do not trade the trend) meaning that for each long position there is 1 short. Total uncertainty among market participants.
Shorts are at their min
And so are Longs
It means that the total number of people POSITIONED in themarket is very low. Many are out.
What to do then?
Tough to trade with leveraged positions, much safer to do it with options. The Volatility is very low, which is the perfect environment to buy options, the direction is not important.
OPTION#1
I am considering buying a straddle ( a call and a put at current price strike), aiming at volatility to go up. I do not care of the direction, if there is an abrupt movement and vola increases, straddle will gain.
(not strangle because it implies a movement first, which we do not know when will happen)
OPTION#2 in the next idea (still linked to low volatility scenario we are in)
BTC LONGER TERM - LONG SHORT RATIO - VOL.2Hello, here to show the second part of the idea to identify the general trend before going in details for shorter terms strategies.
(Read the related idea in the link below if you want to learn more about the ratio and don't forget to like and comment as it helps me to understand if you appreciate my contents and what to focus on)
So, starting from the main chart, we see the long position lying in the range 22k-36k, with values outside this band as extremes quickly absorbed and with the turquoise band to separate the bull from the bear market expectations.
The times we broke on the DOWNSIDE, were mainly because of cash in of profits (indeed you see the first extreme was in dec17 when the btc price hit the ath at 20k, and the second in may 2019, when btc started to rally from 4k to 14k: why close a position at the beginning of a rally? If you look at btcshorts index you will see that rally was not trusted by investors who used the rebounce to take the chance to close their positions. Let's not forget we were coming from a more than 1 year bear market and bulls were exhausted).
Break on the UPSIDE instead happened in a very constant way because of an attempt by the traders to position themselves long before the halving event.
Now we are back to more normal values but still in the Bull Market Expectation range. As you can see, some long positions were closed during this rally, so the index still has some room to grow. This indicates a LONG
(looking at the short chart bring us to the same conclusion-> shorts were closed more than opened during this rally, meaning that the market expects it to continue)
Now lets take a look at the long/short ratio which gives back a value of 4.7, meaning that for each short position, 4.7 long positions are opened. Every time it topped was exactly before a drop of the market, even if with time the range has changed over time. From a 0.5-3 range (that signals a kind of uncertainty in the market, because the market actors position swing from 0.5 which means a 2x1 ratio of short-long positions to a 3x1 ratio of long-short positions) to a 2-5 range: even without considering the extremes at 10, the market from mid 2019 (one year before the halving) is definitely skewed towards long positions. That is why we should not expect a return to values of the previous range, but rather in this phase we can consider the value of 2 as a starting point for another run. The question is: should we consider a value of 5 as the top before the next drop or will we go to 10 again?
Unlucklily, both charts were not in existance in2016 so we can not compare their behaviour with the previous halving.