Bitcoin Price LIVE: Mounting Bitcoin Shorts Precarious for the Bears

Bearish Sentiment as derived from Bitfinex long and short position data in the Bitcoin market has rapidly advanced in the past week two weeks, with Short positions at the exchange doubling from 17k short to 34k in the price decline from $7,500 to $5,900, showing no immediate sign of slowing. At the same time, long positions have decreased to lows of 26k, meaning that the bears are outweighing the bulls by 30%.

Bears Need New Lows Under $6K

This is a precarious situation for the bears. For the bears to win the battle, it is necessary to find new lows, with longs capitulating at the same time. This has yet to be proven to be the case in the three previous attempts to find meaningful new lows. 

Part of the reason for this is that the 26k longs see to find a floor at c. 6k with the main reason being that 62% of the longs at this level are long from somewhere lower having built the position in the 2017 advance and are likely to be difficult to be shaken out. 

The remaining 10k…