Bitcoin (BTC) broke out earlier today in a dramatic fashion, rising some 18+ percent in just five minutes or so. Because we’ve been in such a brutal bear market the past year and a half, we might be expecting a sizeable drop to break our spirits again — right?
Well, looking at the shorts, it just may play out differently this time.
If the bears were looking to sell, the Bitcoin (BTC) shorts would be through the roof right now. Surprisingly, they’re not. In fact, on Bitfinex, shorts for BTC are at their lowest levels since February.
— Mati Greenspan (tweets ≠ financial advice) (@MatiGreenspan) April 2, 2019
Looking at the general trend of Bitcoin (BTC) shorts across all exchanges, they have not risen at all in response to the significant price pump. In fact, they have fallen even further. This means that there is some investor confidence this time around that this price rise might actually be sustainable.
You wouldn’t be irrational for thinking this price increase can sustain itself, either. Bitcoin essentially flatlined from February until now, with minimal volatility seen in the entire month of March. The only trajectory was slightly upwards, with Bitcoin only scratching the surface of $4k just last week. The March period was characterized by low price volatility, a slight uptrend, and no massive candles. In such a volatile bear market as we’ve had for the past year and a half, this was very good news.
Now, we finally have confirmation of a proper breakout. Given that shorts are at significant lows, and given that buy pressure is so high, this rally just may sustain itself for the first time in a long, long time.
Will this Bitcoin (BTC) rally have the same fate as the last? Will the shorts stay low? Let us know your thoughts below!