Monday , August 19 2019
Home / peru / Bitcoin short positions in Bitfinex fell 40% after sales of 10,500 BTC | CryptoNews

Bitcoin short positions in Bitfinex fell 40% after sales of 10,500 BTC | CryptoNews

Yesterday, short-sighted short positions (BTC) saw a sudden decrease of 40%, an annual minimum in Bitfineks. The fall is associated with a quick sale by the main operator, which resulted in the formation of possible clamping or clenching.

Bitfinex, a Hong Kong-based exchange house, experienced a special move at 4:40 am (UTC) yesterday. The operator closed its business in the amount of 10,500 BTC ($ 84m at the time), when the price was quoted close to $ 8,300.

The number of short battalions opened at Bitfinex at 3:50 (UTC) was 27,200, suddenly falls to 16,350 minutes later. In the same time period, long positions slightly increased to 25,521 open positions.

Similar circumstances occurred on April 8, 2018, when shorts also noted a 20 percent drop in Bitfinex, while longing was raised. Despite the fall, Bitcoin's price was not affected, remaining fairly stable in the range of $ 7,800 – $ 8,000.

Falling shorts is not always a good symptom

While such a steep reduction may be evidence of an alleged feeling, a very large number of long positions is not always the best indicator. When the number of a given position (long or short) is low, while the number of colleagues is relatively high, the market tends to create a compression of the main positions, what is called the financial markets as clenching or clinging.

In short, when long positions are far greater than short positions (or vice versa), a downward movement would cause much more exaggerated and unstable action by price. As this happened, long-time traders are forced to close their stores to avoid future liquidation, generating even greater pressure on sales. This phenomenon is known as "Long press"

Bitcoin, the leading currency after market capitalization, has seen an increase of 28% over the last 7 days, finding resistance close to $ 8,000. Although there are bullish signals in different indicators, as reported by the kryptonite, the contraction of the price may be the healthiest for sustained growth in a bitkin in the coming months.

Source link