Bitcoin’s Monthly High Could Ignite Major Price Movement

Bitcoin's Monthly High Record

The Potential Outcomes Of The Short Positions For Bitcoin

The cryptocurrency news shows short positions for bitcoin. Bitcoin’s Monthly High may cause investors to lose confidence in the cryptocurrency. There is speculation this could result in a major price movement. During the past few weeks, bitcoin analysis has shown a significant increase in bitcoin shorts due to the monthly high. This is an indicator the confidence of the investors may have declined for the dominant cryptocurrency. Shorts are still not a convincing indicator of the cryptocurrency market sentiment. This is because the opinions of the analysts regarding the way the short contracts impact the price of bitcoin is often quite different. 

Hsaka is the cryptocurrency trader and analyst for CNN. According to bitcoin price news, Hsaka stated the sentiment of the investors is not necessarily reflected by the shorts in the market. There is also the possibility of a short squeeze for bitcoin. The generality for the majority of the markets is the investors have a negative association regarding shorts. The shorts are a demonstration of the investors predictions that a specific market or asset is going to decrease in value during the near future. The bitcoin analysis showing a rise in shorts in the bitcoin market is often an opportunity to target a short squeeze by the investors. This means the short contracts are basically forced out of the market. The acquisition of new bitcoin is made at a lower price. This will push the price of bitcoin even higher. 

This is the reason Hsaka believes bitcoin shorts are used by traders as both an indicator and a supplement to their opinions. This does not predict the trend of the market for the future. The trader stated they do not look at either the long or short narrative too often. This was compared to trying to read tea leaves. The interpretation can be skewered to fit the bias of any individual. This has occurred a lot in the past. Shorts are a breach of the all time high (ATH). As more and more people begin talking about a mega squeeze, the result is a major bitcoin pump. When the pump never materializes, the shorts will gradually normalize. The growing uncertainty regarding the performance of bitcoin during the short term may have caused the increase in short contracts. 

Bitcoin Remains Dominant

Cryptocurrency news has reported instances in the past where bitcoin had a prolonged period of stability. A large drop in price was recorded. A good example is the bitcoin price news in November. The $6,000 regions experienced months of stability prior to a rapid decrease to $3,000. In December, the cryptocurrency reached a yearly low of $3,122. There have been numerous changes within the bitcoin market. During the last few weeks, alternative cryptocurrencies and tokens have recorded record highs in a single day. Tokens such as Zcoin, RLC and IXEC have recorded gains ranging from forty to seventy percent against both the United States dollar and bitcoin. According to the cryptocurrency analyst Satoshi, bitcoin is the dominant currency, representing the landscaping of the cryptocurrency market. 

There could be a rapid decline of alternative cryptocurrencies if the value of bitcoin does not maintain key levels of resistance in excess of $4,000. The analyst also stated if bitcoin does not initiate a large upside movement and regain momentum, the rapid price changes in alternative cryptocurrencies will not stop. Alternative cryptocurrencies have become very bullish. Some have survived months of falling wedge patterns. The analyst is carefully watching what happens when the long resistance trend line is confronted by bitcoin. The real season for alternative cryptocurrency will begin if bitcoin breaks out. If not, the party for alternative cryptocurrency is over.

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