Yahoo Finance Bullish Sentiment for Bitcoin As Long Bets Near 11-Month Highs
Bullish bets on bitcoin, the world’s largest cryptocurrency by value, reached 11-month highs on Monday, according to the data from the cryptocurrency exchange Bitfinex.
The number of long positions on bitcoin’s US dollar-denominated exchange rate (BTC/USD) jumped to 38,237 BTC at 04:10 BTC – the highest level since March 30, 2018 â and were last seen at 36,176 BTC.
While long positions have risen by 35 percent in the last three weeks, short positions have remained largely unchanged. As a result, the long-short ratio, a barometer of market sentiment, has improved to 1.5 from 1.18.
You Can Now Send Bitcoin Tips Over Lightning on Twitter
The market mood has indeed turned bullish but hasn’t reached extremes, as long positions are still at least 8 percent short of the record high of 40,193 registered on March 26, 2018.
That said, BTC’s rally to 5.5-week highs above $3,900 has likely opened the doors to a convincing move above $4,000. That would only attract buyers, pushing BTC/USD longs to fresh record highs.
As of writing, BTC is changing hands at $3,912 on Bitfinex, the highest level since Jan. 10. The cryptocurrency would become vulnerable to “long squeeze” â Â a sudden pullback in prices due to an unwinding of long positions â if and when the bullish sentiment reaches extremes.
Bitmain Announces New, More Efficient 7nm Bitcoin Mining Chip
Disclosure: The author holds no cryptocurrency assets at the time of writing.
Bitcoin image via Shutterstock; charts by Trading View
