Last year was a tricky year for crypto traders. Many thought that bitcoin and altcoins would find solid ground and make a break for new highs. That didn't happen. Even the bears thought prices would head lower and sooner. Those who repositioned at higher levels made out alright, but those who held out were taken out the back and shot. Now spot short interest is at some of the lowest on record. This is not good news for bulls, and indicates that valuations are likely to come down significantly as the long trade is crowded.
Overall, the odds favor the current bears in 2020. Most trades (which are long at the moment) will need to go short to cover their positions. Price failed to stay above the $9.5K level and now price is struggling to stay above the $7.25K level. Breaking the latter opens the door to $2K this year as per our model.
PS. If you found this idea useful/interesting be sure to follow me on my Twitter account where I post more frequently. The link can be found on my TradingView profile or @ErikFertsman.
Overall, the odds favor the current bears in 2020. Most trades (which are long at the moment) will need to go short to cover their positions. Price failed to stay above the $9.5K level and now price is struggling to stay above the $7.25K level. Breaking the latter opens the door to $2K this year as per our model.
PS. If you found this idea useful/interesting be sure to follow me on my Twitter account where I post more frequently. The link can be found on my TradingView profile or @ErikFertsman.
