Sunday's Sell Off Resulted in 11-Month Lows for Bitcoin Shorts

Bitcoin’s short positions reached a new 11-month low this Sunday, right after last week’s 6-month low on such positions, according to data from leading cryptocurrency exchange Bitfinex. The short positions dropped to 17,085 BTC from the daily high of 19,604, a level we have not seen since 12 March 2018. The 12% change was accompanied by a 8% decrease in the price of Bitcoin.

The leading cryptocurrency ended the week with only a 3% increase to its price, compared to the week before that, but was boasting a 15% increase up until 03:20 UTC when the sell off began. Usually a rejection from such a key technical resistance leads to a stronger bearish sentiment, manifested by an increase of the funds allocated to BTC/USD short positions, which did not seem to happen on Sunday.

Bitcoin reaching new lows on its short positions two weeks in a row, could suggest investors are abandoning the idea that the price of the virtual currency will decrease further. In fact, the lack of interest in short positions after such a big drop in the price of Bitcoin could mean that investors were simply taking a profit from last week bullish sentiment.