🚨Alert of growing short positions 🚨
Good morning Crypto Nation! Let's analyze closely what is happening with institutional capital and how it is positioning itself.
Currently, the price of $BTC has reached a target level where profits are being taken (I left an analysis done on my profile, don't miss it) but also the futures market is being loaded with shorts in a staggering way.
As we see below, according to Coinalize data, open interest (total positions) is on the rise, which makes sense with this increase. However, in the futures market using stable coins as collateral, trillions of short positions (sales) are being sold, which are being absorbed by spot purchases, possibly due to capital flow from the #ETF. and retail purchases.
More concerning, the Long/Short ratio keeps getting closer to 1, a signal that bears are applying downward pressure.
Clarification: In the L/S ratio, the closer it is to 1, the more short positions there are; the higher it is above 1 means that longs are supporting the rise.
In summary, when the pressure in spot decreases, the price has high chances of falling, which is excellent because we will be able to buy cheaper and, there will be a lot of liquidity in this current area, which will later help push the price further.
How long can it take? We do not know for sure, but you should take caution and wait now.
Best regards, Citizen Crypto!! Remember that on my profile you have analysis on BTC and other assets, as well as guides and tips for trading if you are learning.