BTCUSD Shorts Back to 2018 High After Quick and Sizable BTC Retrace

BTCUSD shorts (a measure of how many people are betting against Bitcoin) is nearly back to its 2018 highs for the 3rd time after Bitcoin dropped about $1k in day yesterday.

With many short positions quickly opened over the last 24 hours or so, and with very few of those positions closing, it sets the stage for a potential short squeeze. NOTE: I don’t know how many positions are open, only the total size, so it could be a few large positions or many small ones.

This is a rather odd occurrence. The drop in BTC was quick and people were quick to go short. This logically created a large chunks of shorts all the way up to the previous high. If BTC were to reverse course quickly it could liquidate those shorts in quick secession and force them to cover, potentially making for a volatile couple of days.

Or, you know, the other things that could happen are that we go sideways and shorts pay fees or close their positions for a profit or continue to grow, or we drop and shorts get a big payday.

Nothing has to happen, but that said, last 2 times we hit this high of shorts we saw a Bitcoin bull run and shorts closed.