The post Planning on shorting Bitcoin? Here’s the latest BTC short ratio appeared on BitcoinEthereumNews.com.

After the 2024 presidential election results became certain on November 6, Bitcoin (BTC) embarked on a remarkable rally, surpassing silver to become the world’s eighth-largest asset and soaring toward the $90,000 mark. Such a staggering rally has simultaneously fueled investor interest as BTC appeared poised to hit the long-awaited $100,000 as the market experienced massive inflows and provided an opportunity to profit off a well-timed short position. Still, as ever, betting against the world’s premier cryptocurrency is proving risky, as an estimated $222 million worth of Bitcoin shorts have been liquidated in the last 24 hours alone. Shorts dominate Bitcoin volume despite record rally Still, it is interesting that comparatively few traders opted to short Bitcoin amidst the price surge as the actual peak of short positions came shortly before the election, per the data retrieved from Binance on November 12. Data shows, there were two distinct periods of heightened short volume. The first occurred during the transition between October and November, and the ratio approached 65% in favor of shorts.  The second phase came as the post-election BTC rally temporarily slowed down as it struggled to climb within the rough range between $74,000 and $76,000. Interestingly, recent trading shows a shift, with long positions regaining dominance as of November 12, signaling renewed optimism for Bitcoin’s continued rally. Specifically, bets favoring a continued rally exceeded 40% of the total volume for the first time since November 6. Bitcoin long/short ratio. Source: Binance Such a shift in the dynamic can be explained, on the one hand, by the rapid weekend and Monday rally erasing a vast amount of short positions and, on the other hand, by BTC finally entering a correction on Tuesday. Bitcoin price analysis Indeed, after experiencing what appeared like an unrelenting upsurge since November 5, Bitcoin rejected the…

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Filed under: News - @ November 12, 2024 4:26 pm