THE NUMBER OF SHORT POSITIONS ON BITCOIN HAS EXTREMELY INCREASED
On Thursday, December 6, the number of short positions on bitcoin updated the six-week high, reaching 37 891, on the popular Hong Kong exchange Bitfinex.
Last time, the indicator reached such high values on October 15 at 36 996. Note that over the past three weeks the number of shorts has increased by 95%.
At the same time, the number of short positions did not fall below $35000 even when the bitcoin price tried to get out of the deep oversold zone, showing an increase from $3500 to around $4400.
At the moment, says analyst Omkar Godbole, the ratio of long and short positions indicates the overwhelming dominance of the bears.
In his opinion, given the current situation, the price of bitcoin may soon test the mark of $ 3474. However, Godbole added if the number of shorts will update the historical maximum (40 289), the sellers force can dwindle.
As of 16:50 UTC, bitcoin is trading around $3650, and the drop over the past day was slightly more than 4%.
Recall that in November 2018, the price of bitcoin showed the worst dynamics over the past seven years.