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The amount allocated to short bets on Bitcoin dropped to its lowest level in more than six months during Tuesday's trading session, revealed data provided by the popular cryptocurrency platform Bitfinex.
At 13:00 UTC today, the total financing in BTC's short-term issues, or positions that would benefit from a lowering of the price of the underlying bitcoin badet, has fallen to- above the recent low of 18,992 BTC set last November at 18,888 BTC – the lowest amount seen since August 4, 2018.
The move came one day after the Bitcoin price rose 8%, which probably trapped investors with a bearish view of the bad side of the market, forcing them to cover a large number of short positions.
Current figures show a 28% decline in the amount of funds in short bitcoin since the beginning of the day yesterday.
Interestingly, bullish bets on Bitfinex, known as "longs", have also declined sharply in the past 48 hours.
Bitfinex data also reveals that the amount of BTC / USD long positions fell by 29% from yesterday's high, which is probably a sign of investor deleveraging or profit after rising nearly 18% Bitcoin prices in the last 11 days.
In the current state of affairs, the ratio of long positions to short positions is 1.42 to 1, which means that there is 1.42 BTC in a long position for every 1 BTC is a short position on Bitfinex. The ratio is down slightly from the most recent high of 1.54 to 1 set on February 15th.
As noted in CoinDesk's previous badysis, an unusually high long / short ratio may be a sign of an impending "long squeeze," or a rapid hedging of long positions that increases the borrowing rate. price drop. However, the current ratio of 1.42 is lower than both the ratio of 1.8 to 1 set in August and the record ratio of 3.74 to 1 set in February 2018.
Disclosure: The author holds the following rights: BTC, LTC, ETH, ZEC, AST, REQ, OMG, FUEL, ZIL, 1st and AMP at the time of writing.
Teddy bear picture via Shutterstock; TradingView charts
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