By Jim Fredrickson
This will be a short post to make a few quick points…
A member of the Geometric Thinking community posted the chart above in our chat channel today. When I saw it I felt that our subscribers everywhere deserve this heads up.
We can see a record number of short positions in the BTC market (almost all of them are certainly leveraged). For those of you that don’t know, a short MUST buy at some point. They made a leveraged bet by selling coins they did not own, so sooner or later they must buy them back to return the borrowed coins. They hope to buy them back at a lower price than they bought them of course. But if prices don’t fall, but rise, they are losing money the longer they hold the short position.
As readers know, we called the 4/1 low in BTC more than a week in advance. Since 4/1 the shorts have been unable to break that 4/1 low, though they have been hoping and trying for 11 days now.
If the 4/16-4/17 energy point is an acceleration point to the upside, as we suspect, then there will be a ton of shorts buying their coins back around the same time.
“Since 4/1 the shorts have been unable to break that 4/1 low, though they have been hoping and trying for 11 days now.”
Of course we don’t know for certain, yet, this is the way it play out. But if you are short, imho, it might be a good idea to start closing your position now. If you are in cash, it might be a good time to start preparing for an entry.
Our chat community members will know what to look for before most of the world does, so you might want to think about joining us.
Remember that the author is a trader who can and does make mistakes from time to time. Each trader must assume full responsibility for their own trades, based on his/her own due diligence.