The longs, the shorts and the paper hands.

Current status

Longs shorts and BTC – 15 Mar 2022

What does it mean?

There’s much more into this picture than meets the eye.

Usually the longs (cyan color) accumulate when markets are going down (BTC in Yellow), that’s the smart money – taking BTC on a bargain from the retail paper hands on every local fear point.

You can see they accumulate sharply on May 2021 crash for instance, and then sell on top – July 2021. Retail investors were (as usual) doing it wrong – buying before market crash, and selling during and after the crash.

The shorts on the other hand (red-green candles on this chart), are more sneaky, come for small amounts of time, consider there’s gonna be a big dump (or even manipulate or contribute to it) and then fade out. Here it looks clearly that they didn’t get what they ask for, and left peacefully. They arrived at 10th of March 2022, and left 5 days later. Probably expected EU to ban PoW or some other thing.

Yes, but what does it really mean for me?

This is an interesting period of time.

Two strong opposite forces – global markets are down, inflation is high, interest rates are gonna climb… at least few months of recession is on the horizon.

On the other hand, Bitcoin might decouple from the financial system (which is what it should do, by-design), and due to geopolitical events might even get more adoption in the near term.

Yes, but what does it really-really-really mean for me?

Look at the longs man… they never lie. But for the near term, anything can happen. So as long as you can absorb near term downtrends, go long.

Leave a comment

Your email address will not be published. Required fields are marked *