The pessimistic sentiment round bitcoin costs noticed the variety of shorts hit a six-week excessive on Thursday.
The BTC/USD brief positions on the cryptocurrency change Bitfinex jumped to 37,891 – the best degree since Oct. 15 – and had been final seen at 36,996. Notably, shorts have risen by 95 p.c within the final three weeks, accompanying BTC’s latest drop to 14-month lows close to $3,500.
Extra importantly, the brief positions remained elevated above 35,000 throughout BTC’s oversold bounce from $3,500 to $4,400 and climbed to contemporary multi-week highs on Thursday. Additional, the long-short ratio of 0.73 is biased towards the bears.
BTC/USD shorts on Bitfinex
The information signifies that, regardless of being so deep into the bear market, sellers look like displaying no indicators of exhaustion. Because of this, the cryptocurrency could revisit the latest low of $3,474 as hinted within the technical charts.
The bearish sentiment, nevertheless, may quickly attain extremes because the brief positions are down simply 7 p.c from the document excessive of 40,289 that was reached on on Sept. 19. Furthermore, the intense bearish positioning is extensively thought of an indication that the sell-off is overdone and sometimes presages a pattern reversal.
Subsequently, the prospects of sudden bullish reversal, much like the one seen on April 12, would enhance considerably as soon as the brief positions attain document highs.
Disclosure: The writer holds no cryptocurrency property on the time of writing.
Market app picture through Shutterstock; Price charts by Buying and selling View