Bitcoin [BTC] Short Squeeze and 30% Correction – The story of 2019
Bitcoin traders have been beaten down more in 2019! Here is the proof.
Bitcoin [BTC] trading in 2019 can be primarily defined by two moments
- Short Squeeze
- Minimum 30% correction
The graph compares Bitcoin’s price with the difference with between Bitcoin long and short orders on Bitfinex. The two market triangular regions are the blunders made by the majority of traders in 2019.
Let’s see how!
The surprising rise in April was not anticipated at all. The market soon saw a short squeeze. Then the traders made some profit from the rise till $13,800 closing their long orders.
Minimum 30% correction
However, after that, the reversal above 30% and then 36% kept on increasing the long traders vs long trades. Tone Vays and other leading analyst had suggested that a 30% correction is minimum correction required. The market went full-on bullish after correction.
However, he and Peter L. Brandt has also noted that the correction of a parabolic move traces back 80% in most cases.
Currently, the difference between long and short orders suggest the market is long now. However, the price broke below the 200-Day Moving Average. This is the first time that the 200-Day moving average is broken in a bull market. Hence, if a quick reversal is seen by the end of the week, the bulls are still alive. Otherwise, the probability of long squeeze is very high with every $100 drop in price.