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Bullish bets on bitcoin, the world's largest cryptocurrency in terms of value, reached their highest level of 11 months on Monday, according to data from the Bitfinex cryptocurrency center.
The number of long positions on Bitcoin's US dollar exchange rate (BTC / USD) jumped to 38,237 BTC at 4:10 BTC – the highest level since March 30, 2018 – and had been Last seen at 36 176 BTC.
While long positions have risen by 35% over the last three weeks, short positions have remained virtually unchanged. As a result, the long-short ratio, a barometer of market sentiment, improved from 1.18 to 1.5.
The mood of the market has certainly become bullish but does not reach extremes, the long positions are still below the minimum at 8% of the record of 40,193 recorded on March 26, 2018.
That said, the recovery of BTC to more than $ 3,900 in 5.5 weeks probably paved the way for a convincing advance above $ 4,000. This would only attract buyers, pushing BTC / USD positions to new records.
As of this writing, BTC is changing hands at $ 3,912 on Bitfinex, its highest level since Jan. 10. Cryptocurrency would be vulnerable to "long squeeze" – a sudden price decline due to a denier of long positions – if the sentiment reaches extremes.
Disclosure: The author does not hold any cryptocurrency badets at the time of writing.
Bitcoin image via Shutterstock; charts by Trading View
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