BTC Shorts Near 2018 High As Bitcoin Ranges around 2018 Lows
BTC Shorts (BTCUSDSHORTS) are nearing their 2018 high as Bitcoin ranges around its 2018 lows. Is BTCUSDSHORTS going to the moon? Let’s discuss that.
First off, let’s talk about why Bitcoin shorts would be high. Reasons logically include:
- A lot of people think it is going down.
- Big players are betting crypto is going down.
- Big players are hedging against long positions.
In other words, shorts are up, that is a fact. So why are shorts up, well logically it is because people think Bitcoin could go down. However, we don’t know if this is many people on the same page and/or some big players with large positions. Also, we don’t know if these people are covering long positions (we know BTCUSDLONGS aren’t up, but we don’t know about holdings outside of that).
Second, what could happen with shorts high, longs low, and prices near 2018 lows? Here are some logical guesses:
- The trend is our friend, shorts are high because crypto has been weak and many are wisely betting against it. As the price drops, shorts will close. Consider, ETHUSDSHORTS was much higher July 18th when ETH was in the high $480s than it is today… there was no squeeze, Bitcoin dropped and ETH plummeted.
- A bullish short squeeze is eminent. In April, the last time we were at a record high for short interest, a massive short squeeze occurred and crypto started on a month long bull run.
- Bitcoin does short squeeze or drop, but alts don’t follow that trend. So far alts have followed Bitcoin, and historically they have, but in January 2018 they sort of rejected that trend and went their own way. Nothing says that can’t happen again.
In short, I really don’t know what will happen or how one would want to play this. In April there were great rewards for betting against the trends and betting on crypto when it was down in the dirt… but will lightening strike twice? Who knows!?! Maybe BTCUSDSHORTS is going to the moon?
All I would say is that the SEC’s Proshares ETF decision potentially will push things in one direction or another, and that happens this week.
Author: Thomas DeMichele
Thomas DeMichele has been working in the cryptocurrency information space since 2015 when CryptocurrencyFacts.com was created. He has contributed to MakerDAO, Alpha Bot (the number one crypto bot on Discord),...
Thomas DeMichele's Full Bio
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A cryptocurrency is a fully decentralized, secure, digital currency whose creation is controlled by cryptography. Cryptocurrencies are not issued by central banks and their value does not depend on bank policies. Unlike regular currencies where new money can be introduced in the money supply through Quantitative Easing (QE), cryptocurrency prices are purely based on supply and demand. Bitcoin, created in 2009, was the first cryptocurrency. There currently are over 800 alternative cryptocurrencies. I’m an elderly gentleman, closing in on 60 years of age. My son introduced me to Crypto in late 2012. After doing a lot of research in Btc I felt strongly that It has a lot of growth and potential ahead of it. So my son and I built my 1st rig and I started mining in January 2013, pulled $5,000 from my IRA and bought Btc at $13.44 and have never looked back since. The sweetest sound that I’ve ever heard was the clink of my 1st mined Bitcoin way back then. That was as satisfying a note as there ever was on any musical scale. Nothing but happy days ahead since. Don’t get me wrong, there have been bumps in this Crypto highway, the demise of the Silk Road, Mt Gox, DAO hack to name a few but as a HOLDer (holding on for the long duration) not a HODLer (hanging on for dear life) and not day trading, has rewarded me with quite a decent profit. It just takes a lot of patience (Sisu) and doing your research with due diligence. I have since invested in Ethereum (Dec 2015), Monero (Jan 2016) and lately Omisego (July 2017) all purchased from some of my profits from Btc to go along with my newly acquired free Bch and recently free Omg. I’m currently operating 3 rigs equipped with 6 gpus each. 2 mining Eth and 1 Monero for now, all of which will be re-evaluated after Metropolis kicks in to see which direction I go from here. So I ‘m back to doing more research in order to help with my next moves but I’ll always be a strong believer in Ethereum which is where I’ve made my money so far. HOLDing on to the rest for now. Btc $5,000-10,000, Eth $2,500- 5,000, Monero $200-400, Omg $100-1,000 no one ever really knows but MY research says yes and so far MY research has not proven me wrong. Bought Btc at $13.44, Eth at .80, Monero at .48, Omg at .43 Bch for free. No where to go but up for me. Just biding my time. It’s taken me over 4 and a half years to get here but I’ve made over $4,000,000 so far with just my original investment plus the cost of my rigs and I’m still sitting on a lot more. Taking a position and HOLDing is where the real profit is and it isn’t going to happen overnight. So if you want aggravation and ulcers go ahead and day trade, try and beat the Market I wish you luck but the real money comes with Research, HOLDing and Patience. I will stop here so I don’t bore you guys, but it is sure worth your time. in case you are interested in venturing into investing in Crypto and Digital Currencies, or perhaps you are trading them but you don’t understand what you are doing, Hope this advice helps because in the long run what it all comes down to, its just Eths, You and Me hopefully making the right decisions, feel free to get in touch with me, I will be sure to guide and assist you with any information you may need to invest in these new and unpopular crypto and digital currencies that are making waves at the moment.
Thomas DeMicheleThe Author
Thanks for the inspiring story. Good luck and HODL on.