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BTC Shortsqueeze possible

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@urun
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After I see the massive amount of shorts in BTC ( compared to the past) + more and more people talk about a short squeeze, I think this could happen.

Why?

First, these are only the shorts on Bitfinex. I think we have a lot more in the market. Second, last time we see shorts at this level was 15.Mar 20.

If you look closely at the chart, it was after the huge sell-off. Not before. After.

Do you know what starts on these dates? Yes, the Bullrun we have today.

But wait, on the same date, a lot of long becomes liquidated. This is this time different. We have twice the amount of longs without huge drops in the past.

A huge drop of in % long vs short was june 6. 2021. From 98% long 2% short to 28,81% short 71,25% long.

Because shorts are in general always lower, I would expect a lot of longs to be hedged (or full bought) compared to the shorts in these cases are unhedged ones. This means they sell what they don't own. Like a CFD works.

It doesn't mean they can be a lot in long too. But it should be much less ( compared to numbers 2 years back). Shorts that come to these levels really rare.

In the case, we bottom out in BTC and the price rise again, these unhedged shorts need to buy BTC to clear the positions. 19.064 Bitcoins are only shorted on Bitfinex. Combined with other exchanges these numbers could be much higher.

It could end up in a massive buy, called the squeeze. Retails are 99% wrong in the market. Retails love leverage. Retails lost most time money.

90/90/90, some people will understand.

Yup.

Also, no lower low on a zoomed-out chart. Uptrend not broken.

It could end up from fear to Fomo to super greed.

No financial advice only some thoughts on the magic internet money.

Posted Using LeoFinance Beta