Bets On Bitcoin Price Decline Hit 6-Week High – CoinDesk

myBTCcoin

11:27 AM

The pessimistic sentiment around bitcoin prices saw the number of shorts hit a six-week high on Thursday.

The data indicates that, despite being so deep into the bear market, sellers appear to be showing no signs of exhaustion. As a result, the cryptocurrency may revisit the recent low of $3,474 as hinted in the technical charts.

The bearish sentiment, however, could soon reach extremes as the short positions are down just 7 percent from the record high of 40,289 that was reached on on Sept. 19. Moreover, the extreme bearish positioning is widely considered a sign that the sell-off is overdone and often presages a trend reversal.

Therefore, the prospects of sudden bullish reversal, similar to the one seen on April 12, would improve substantially once the short positions reach record highs.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Market app image via myBTCcoin; Price charts by Trading View



Mine Here #1 Bitcoin & Litecoin Mining Pool
myBTCcoin

Leave a Reply

Your email address will not be published.