Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
On the other hand it is bullish that they closed them, right?
Even if we won't have such a sudden spike in price.
Could be! IDK
If they now turn net buyers then yeh, for sure! But low open short positions can actually signify bearish, not bullish conditions as, well, a lot of traders get long at the tops and short at the bottoms thereby creating the turning points as they get squeezed. We will see ...Just pointing out that, all else being equal, a bit of thrust had potentially been removed. Would have been juicy if the wall had been eaten AND the shorts were still open. That coulda got real interesting real quick!
I'm afraid those shorts were a warranty against the price going down. Shorts are btc sold for usd with the hope of buying back when price goes down, so (i could be wrong as i lack experience there) in my understanding shorts = potential buy pressure on a downtrend.
Now that market went clear of those, with low slippage also, it could very well go down to squeeze longs without that added buy pressure.
That's what I see, though TBH the net longs on margin does not look perilous and has not changed much recently. I think the froth was been taken out of that with the last liquidation.
So probably more boring sideways action yawn ...