The price of Bitcoin broke through $18,000 on November 18, 2020, which led to a high level of bullish sentiment on spot and derivatives exchanges . In the daily price chart, Bitcoin has risen by more than 4.5% in less than 24 hours, setting a new high for 2020.
The current bullish sentiment reflected in the price chart may also be referred to as the “psychological warfare” initiated by Bitcoin maximalists against “coinless” and “short sellers”. The current volatility and price increase have been determined in FOMO, because the price of Bitcoin has increased by 47% in 1 month, and several institutional investors are also buying Bitcoin at the current price level, so it may be more real.
As early as 2017, many institutions and independent researchers referred to Bitcoin as a “Ponzi scheme” and a “tulip scam”, but with the current price increase, Bitcoin has returned to the market for the second time . To be sure, this second rise has completely aroused people’s suspicion, because the bubble will not suddenly pop and expand again. This made the famous economist Nouriel Roubini (Nouriel Roubini) himself re-examined Bitcoin.
The narrative that may lead to price increases this time is a “supply shortage story,” quoting Eric, the latest publication of Arcane Research, which has attracted many retail and institutional traders to use Bitcoin.
He said, “Somewhere in your heart, you know something is wrong in the world, let us face reality. The bond yield is zero, the price-to-earnings ratio of stocks is meaningless, and the fiat currency stock chart (M2) looks like It was drawn by a child with crayons. Even though Bitcoin is a rat poison-related thing, at least the supply is limited.”
So, who is shorting Bitcoin in the face of Bitcoin’s rise?
According to Brandon Quittem of SwanBitcoin, we all lack Bitcoin and only 1% of people realize it . However, it is very poetic to say this, because this kind of thinking has aroused strong controversy here. At present, some analysts on the chain believe that Bitcoin is overbought, but according to AlexSaundersAU’s statement, they made this mistake.
As Alex Saunders said in a tweet, shorting Bitcoin can be a rookie mistake, just like selling too early or during a pullback. Does this mean that shorting Bitcoin is a completely bad decision? In fact, if you make a quick profit in a bearish event, it may not be useless.
“Yesterday, I shared why the parabola is more likely to occur than everyone’s expected correction, time and time again, but investors made the mistake of selling prematurely, or worse, shorting the market.”
In order to see the current short-selling situation, let us consider the current put/call ratio. For trading volume, it is well above 0.7, which suggests that bearish sentiment may take over and trading volume will inevitably fall, albeit only in the short term.
Of course, if you also think that Bitcoin is expensive at $18,000, and if you think that Bitcoin is also expensive at $16,000, you may short Bitcoin at this time because some analysts call for Bitcoin to be price Correction, this may be inevitable in the short term.
The original text comes from ambcrypto, compiled by Blockchain Knight, the English copyright belongs to the original author, please contact the compiler for Chinese reprint.
