Good morning. Here at BitOoda, we have been BEARISH of BTC and remain of that opinion. $3,600 has been, what we feel, as the key ‘magnet’ level between the range of $3,200 and $4,000. There is a battle between the bulls and bears at this price, and we feel the BEARS could likely prevail. We will consider changing our view if and when there is CAPITULATION in BTC price, which we have not seen to date.
Today we take a look at the short interest in BTC. Above, we can see that short interest on BitFinex peaked on December 7th. Since that day, we have seen this short interest drop roughly 46%. In this same time period, BTC has rallied ~18%. To us, we view this as BEARISH price action. The BEARS in this market are able to buy back their spot without rallying the market, meaning there is a larger amount of selling coming from the weak ‘trapped length’ and beaten-up BULLS. Any short-term rallies have been failing, and those trying to catch a bottom keep getting diced up. As we have been saying for a while now, in a BEARISH market, one should sell into rallies, and eventually prepare to see BTC test the lows that were made in mid-December once again. Good luck and try not to lose any of your fingers catching a falling knife!