BTC/USD Shorts Still Near All-Time Low Levels while Longs Continue to Rise
- The market is in “Extreme Fear”
- How Low? $7,250 before another leg lower to $6,000 in December
- For bulls to work, they need to break through $7,490
- Hedge Funds Short on Bitcoin
- Bitcoin has lost about 24% of its value since last Monday
On another red day, Bitcoin dropped to $6,515 level but since then has been making its way to today’s highest level at $7,230.
At the time of writing, BTC/USD has been trading at $7,150 as per Coincodex while managing the daily trading volume of $755 million which is up from last Monday’s $175 million.
Market in “Extreme Fear”
The price might be started to see some green, but the bulls have a lot of work to do as the cryptocurrency market is still in “extreme fear” with the Crypto fear and greed index flashing a reading of 17.
Presented on a scale of 1 to 100, closer to 1 we have got extreme fear and greed when the scale tilts towards 100.
Last month, the market was neutral that turned into fear last week. But for the past few days, it has been stuck in “extreme fear.”
Trader Mr. Anderson says, this “Extreme Fear is warranted,” explaining,
“They will push until pushed back. The novice should stay on the sidelines. Pros should enjoy the volatility. Typically, the only way out of these scenarios is to bounce out. Expect turbulence.”
But How Low?
The market is a long way from getting rid of bears that trampled the market last week, resulting in a loss of 24% in BTC’s value. About today’s bounce, analyst Crypto Wolf says,
“We're bouncing because of the bullish div on multiple time frames on oversold conditions. 7490 is the resistance to break through for bulls.”
Analyst Benjamin Blunts expects Bitcoin to make its way up around $7,250 before it moves to another leg lower to $6,000 in December.
“Funding about to flip soon, looking for a w4 up to around 7250 then another leg lower.”
— Josh Olszewicz (@CarpeNoctom) November 23, 2019
Analyst Mati Greenspan in his latest newsletter also pointed out that BTC has support present at $6,800. If it breaks, the next available support is around $6,100 and then we have the psychological barrier present at $5,000.
Hedge Funds Short on Bitcoin
Despite the ongoing calls for a drop in Bitcoin price, BTC/USD shorts are around their all-time low level, seen in July this year.
Meanwhile, BTC/USD longs continue to rise and are currently at the level recorded earlier this year.
These traders might not be short on BTC price but hedge funds that trade Bitcoin futures on CME are surely betting on a drop in Bitcoin price.
As per the data from the Commodities Futures Trading Commission, asset managers are heavily short on Bitcoin while non-reportable and other reportable traders are still skewing towards long.
On CME, 1 Bitcoin future contract is equal to 5 BTC and with these hedge funds short on Bitcoin price, it’s to be seen how low Bitcoin would go in November.