{"id":268451,"date":"2021-06-07T15:00:00","date_gmt":"2021-06-07T12:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bears-batter-bitcoin-market-sentiment-as-bitfinex-margin-shorts-surge-378\/"},"modified":"2021-06-07T15:00:00","modified_gmt":"2021-06-07T12:00:00","slug":"bears-batter-bitcoin-market-sentiment-as-bitfinex-margin-shorts-surge-378","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bears-batter-bitcoin-market-sentiment-as-bitfinex-margin-shorts-surge-378\/","title":{"rendered":"# Bears batter Bitcoin market sentiment as Bitfinex margin shorts surge 378%"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3df3624b4c4\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3df3624b4c4\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/bears-batter-bitcoin-market-sentiment-as-bitfinex-margin-shorts-surge-378\/#Long-margined_positions_meanwhile\" >Long-margined positions, meanwhile<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/bears-batter-bitcoin-market-sentiment-as-bitfinex-margin-shorts-surge-378\/#Technicals_disappoint\" >Technicals disappoint<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/bears-batter-bitcoin-market-sentiment-as-bitfinex-margin-shorts-surge-378\/#On-chain_metrics_bullish\" >On-chain metrics bullish<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Bears batter Bitcoin market sentiment as Bitfinex margin shorts surge 378% <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>Bitcoin (BTC) bulls should brace for a potential onslaught from bears as the number of margined short positions on Bitfinex jumps by a little over 378%.<\/p>\n<p>Known to most by the ticker BTCUSD Shorts, the dataset records the number of bearish positions in the Bitcoin market. In simple terms, traders borrow funds from Bitfinex \u2014 their broker \u2014 to trade bet on bearish outcomes for the instrument BTC\/USD. Meanwhile, the value of opened short positions is measured in BTC.<\/p>\n<p>The number of short margined positions on Bitfinex reached an intraday high of 6,468.2202 BTC this Monday, up more than 378% from its previous session\u2019s low at 1,351.72 BTC. <\/p>\n<p>The spike prompted some analysts to alarm about a potential price crash in the Bitcoin spot market primarily because a similar wild BTCUSD Shorts uptrend at the beginning of last month had led the BTC\/USD exchange rate down by almost $13,000 on May 19.<\/p>\n<p>For instance, independent market researcher Fomocap <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Workedia\/status\/1401704003369504769\">tweeted<\/a> a chart that showed a visible correlation between Bitcoin spot rates and its margined short positions. The analyst highlighted two instances to note that two metrics moved inversely with some lag. <\/p>\n<p>His first example showed that on May 25, BTCUSD Shorts dropped lower, which was\u00a0later led to a price rally in Bitcoin spot markets.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-06\/d8713ff5-4f24-4eee-b6c7-279ed76bee22.jpeg\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Bitcoin crashed by 30% following a jump in BTCUSD Shorts positions on Bitfinex. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>The second example showed Bitcoin spot prices crashing after a spike in BTCUSD Shorts.<\/p>\n<p>EBlockChain, a TradingView contributor, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.tradingview.com\/chart\/BTCUSDSHORTS\/aYGzVy0a-Huge-spike-in-BTCUSD-SHORTS\/\">said<\/a>\u00a0earlier on Monday\u00a0that BTCUSD Shorts exceeding 200% and above is a \u201cstrong indication\u201d of an imminent dump in Bitcoin spot markets. The analyst added:<\/p>\n<blockquote><p>\u201cIt could be triggered in a [matter] of few hours [to] three days max.\u201d<\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"Long-margined_positions_meanwhile\"><\/span>Long-margined positions, meanwhile<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The boldly bearish statements for Bitcoin also came as its margin-longed positions rose steadily.<\/p>\n<p>BTCUSD Longs, another Bitfinex dataset that records the number of bullish margin positions, surged to as high as 44,538.6579 BTC on Monday. So, it <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ears, Bitcoin\u2019s long exposure remained higher than short exposure in totality, illustrating that, to traders, the direction of the least risk was to the upside.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-06\/60d8f38c-fe1b-419c-aabb-74b33bc84155.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Bitcoin long exposure on Bitfinex high despite recent spikes in bearish positions. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>But a sudden drop in Bitcoin spot prices could also lead leveraged long holders to dump their BTCUSD positions, which, in turn, incites further selling. Such an event is called \u201clong squeeze.\u201d May 19\u2019s price crash, for example, had liquidated about $7.5 billion of long-leveraged positions across the cryptocurrency derivatives market.<\/p>\n<p>Jacob Canfield, a crypto trader, provided an optimistic outlook for Bitcoin following the May crash. Last week, the analyst stated\u00a0that Bitcoin has already dropped by more than 40% following its May long squeeze \u2014 and now there is a lesser probability of facing another significant bearish move.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">After a long squeeze and liquidity is taken to the downside. <\/p>\n<p>Liquidity is usually engineered to the upside and shorts get trapped thinking more downside is coming. <\/p>\n<p>We already got 40% drop. <\/p>\n<p>Now it\u2019s bears turn to get rekt again.<\/p>\n<p>\u2014 Jacob Canfield (@JacobCanfield) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/JacobCanfield\/status\/1400119202434932736?ref_src=twsrc%5Etfw\">June 2, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Meanwhile, the cost to fund long positions in the Bitcoin derivatives market remained mostly below zero following the May 19 crash. Negative funding rates cause bearish traders to pay fees every eight hours. The situation encourages market makers and arbitrage desks to buy inverse swaps \u2014 or perpetual contracts \u2014 as they simultaneously unload their futures monthly contracts.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-06\/5d74d922-3c54-4c92-9b81-a09360df4a13.jpg\"><figcaption style=\"text-align: center;\"><em>BTC funding rates history. Source: Bybt.com<\/em><\/figcaption><\/figure>\n<p>Analysts typically interpret negative funding rates as a buy indicator because they create incentives for buyers and squeeze short-sellers. Meanwhile, the funding rates become neutral as soon as shorts close their positions.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Technicals_disappoint\"><\/span>Technicals disappoint<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Bitcoin\u2019s ongoing consolidation move has many traders point out the possible\u00a0formation of a bearish pennant structure.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Not a big fan of this structure. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$BTC<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/yO8bG66Zzr\">pic.twitter.com\/yO8bG66Zzr<\/a><\/p>\n<p>\u2014 Blackbeard (@crypto_blkbeard) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/crypto_blkbeard\/status\/1401817609188909058?ref_src=twsrc%5Etfw\">June 7, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>In retrospect, bearish pennants are downside continuation indicators \u2014 i.e., their setup typically involves the asset breaking out of the range and continuing in the direction of its previous trend. For example, Bitcoin dropped from around $65,000 to $30,000 before forming the pennant. Therefore, its likelihood of continuing lower appears higher based on technical structures alone.<\/p>\n<p>Meanwhile, one bullish backstop for Bitcoin remains fears of higher inflation. This week, the United States Bureau of Labor Statistics will release May\u2019s Consumer Price Index (CPI) report. The data will set the future tone for the Federal Reserve\u2019s expansionary monetary policies, including near-zero lending rates and infinite bond-buying programs.<\/p>\n<p>Economists forecast that the CPI will rise to 4.7% for May compared to 4.2% in April.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"On-chain_metrics_bullish\"><\/span>On-chain metrics bullish<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>More evidence dropped in about investors\u2019 intention to hold Bitcoin than to trade\/liquidate it for other assets. For example, on-chain analytics firm Glassnode reported a decline in net exchange flows involving Bitcoin. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-06\/c5520db2-ade8-41cd-abcd-e2a93af6f796.jpeg\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Bitcoin Exchange Net Flow hits 19-month low. Source: Glassnode<\/em><\/figcaption><\/figure>\n<p>Meanwhile, its rival CryptoQuant highlighted a significant drop in volume across the Bitcoin blockchain, hinting at a similar holding outlook via its \u201cBTC: Active Address Count\u201d metric.<\/p>\n<p><em>The views and opinions expressed here are solely those of the author<\/em><em>\u00a0and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.<\/em><\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/bears-batter-bitcoin-market-sentiment-as-bitfinex-margin-shorts-surge-378\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Bears batter Bitcoin market sentiment as Bitfinex margin shorts surge 378% &#8221; Bitcoin (BTC) bulls should brace for a potential onslaught from bears as the number of margined short positions on Bitfinex jumps by a little over 378%. Known to most by the ticker BTCUSD Shorts, the dataset records the number of bearish positions&#8230;<\/p>\n","protected":false},"author":1,"featured_media":268452,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDYvM2Y4YmFlYTYtYjhlNy00MmQ5LThkODgtMDU1MDMzMTk5ZGZiLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[79806,74862,81951,74937,74881,74982,74939,78261,73785],"class_list":["post-268451","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-analysis","tag-bitcoin","tag-bitcoin-analysis","tag-bitcoin-price","tag-bitfinex","tag-btc-markets","tag-market-analysis","tag-tech-analysis","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/268451","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=268451"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/268451\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/268452"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=268451"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=268451"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=268451"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}