$100 million in liquidated Bitcoin shorts may prolong rally, claims analyst

16 Jun, 2019
by David Robb
Analysis
$100 million in liquidated Bitcoin shorts may prolong rally, claims analyst

As BTC recently broke above $9000 and has seen its highest price point in well over a year, one analyst has been taking a look at short positions. Joe Saz claims that over $100 million worth of shorts have been closed.

Saz discussed the relevance of these BTC shorts in an interview with Block TV. He claimed that he has gone from bearish to neutral, and now believes the latest BTC rally may have some legs.

According to Saz, there may have been up to $100 million worth of Bitcoin shorts liquidated overnight. A lot of traders were likely expecting a significant pullback, and the resurgence meant that "they got completely smashed in the face". On BitMex, which is probably the most popular crypto leveraging platform for retail traders, shorts are automatically liquidated once the price rises above a certain level, closing the position to prevent further losses. These liquidations could mean that money will flood back into BTC. 

The trader referenced the Twitter account @BitmexRekt, which gathers together some of the most prominent trades from BitMex, immortalising occasions where traders have "blown their margins".

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Read more about: Bitcoin (BTC)

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