Bitcoin Shorts approaching critical resistance level

6 Ara 2018

BTCUSD Shorts (essentially traders betting that the value of BTC will continue down against the dollar) are rapidly approaching the 40000 level, which throughout 2018 has provided strong resistance and consistently marked the end of downward price action - and hence the beginning of the next uptrend. Although the Bitcoin market appears very bearish at the moment, with many expecting sub-$3000 in the coming weeks, it's worth keeping an eye on the shorts to see if they can help you predict when the bottom is about to occur.

As shorts are currently at 37455 (and 40719 was the previous 2018 high), we definitely have some room to continue up... and hence the BTC price down. But for how much longer? Let me know your thoughts in the comments below. How useful is the BTC Shorts chart to you?

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This is for educational purposes only and not a recommendation to buy or sell.

7 Ara 2018

Not

As anticipated in my post yesterday, we are now well into the resistance area, with BTC Shorts up to 39916. We've only been this high one other time since mid-April and only ever as a wick - never higher than 39592 in the body of the candle.

Throughout 2018, this has always marked the end of the downward movement in BTC. However that was when we had strong market structure at $6000... now this market structure has broken (on Nov 14th), it would seem highly likely traders will continue to short in anticipation of BTC going well below the current $3371 price.

BTC Shorts is your preview of which direction other traders believe we will move next.