TL;DR Breakdown
- The Bitcoin market seems to be following a bearish trend.
- Bitcoin has dropped to half of its all-time high.
- Bitfinex margined short increased by 378 percent.
- This increase bears resemblance to the one that occurred in May.
The Bitcoin market has been grabbed by the bears and they are not willing to let the bulls win. This can be inferred from the major drop in the price of Bitcoin and other cryptocurrencies as well. There are multiple indicators that have prophesied different outcomes for the market. For now, it can be said that the Bitcoin value is hovering below the $40,000 mark.
The Bitfinex margined shorts have increased by a huge amount of 378 percent. To ease understanding, this is also known as BTCUSD shorts. The spike in value can be seen in the chart below. The spike is something that might worry potential investors in Bitcoin.
The dataset is responsible for recording the number of positions that are undergoing a bearish trend. The intraday high that was recorded was around 6,468.2202 Bitcoin which occurred this Monday and was a massive jump from the earlier low that was around 1,351.72 Bitcoin. This huge jump has a lot of implications that investors might possibly be worried about.
What does Bitfinex Short surge mean?
The Bitfinex Short indicates the bearish trend in the Bitcoin market, meaning from within few hours to a few days, a massive dump can occur in the price of Bitcoin. It is similar to the one that occurred in the month of May wherein people saw Bitcoin go down to the value of approximately $20,000. It is possible that Bitcoin might go down as this is a strong indicator.
A similar spike in price found early last month when the value of Bitcoin in USD went down by a huge amount of $13,000. Again at the end of May, the Bitfinex margined shorts went down, and thereafter, a surge in the value of Bitcoin was found. It can be said that Bitcoin might take another swim in the bearish ocean. Many skilled analysts have summarized the situation confirming that it is highly unlikely for Bitcoin to rise this week.
Thus, it can be said that within a matter of hours until a few days (up to 3 days as reported by analysts), it is possible that Bitcoin might reduce in value. It is advised to the investors that they do not panic sell and instead buy the dips, so as to enjoy their gains when the bulls resurface.
