Quote from: JayJuanGee on February 12, 2018, 10:56:14 PM

Quote from: hazukison on February 12, 2018, 10:44:56 PM

Quote from: HairyMaclairy on February 12, 2018, 10:42:00 PM

Ratio of BFX longs to shorts is at ATH (blue line is longs v shorts). Longs outnumber shorts 3.7:1

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Can you explain whats going on here? to the stupid lol..

I certainly don't know what is going on, either.

My understanding is that if there is so much confidence that BTC price are going up, and a large number of traders are betting margin longs, then that creates a really LARGE incentive for bearwhales to push the price in the opposite direction to force the longs to close.

Accordingly, the forcing of the longs to close can then cause a cascading effect that allows for the bears to make much more money than it costs them to push the price down.

On the other hand, if the large number of traders betting for BTC prices to go UP are correct, then the ones betting on UP make a lot of money in that direction too.... I think that ultimately the considerably large ratio of longs to shorts does not tell us the price direction; however, it does likely tell us that in order to get BTC prices to move in either direction, there is going to be a necessity to spend a considerable amount of value in this price range to battle for your preferred direction.. which signifies a need for a decent amount of volume to get the BTC price to move either direction based on the way that the bets are currently laid.

TLDR: Seems that we are in a critical battle price range....

Yep, that's it. The more shorts there are, the more cascading effect we can have on the upside. Consider it sorta a multiplier.

The opposite is also true for margin longs and dumps.

It doesn't mean it cannot rise... in fact, sometimes it just means the situation is so clear that noone dares to short but... for an explosive rise the more shorts being rekt, the better.