The bullish sentiment for Bitcoin is at a maximum of 5 months

The ratio of long-to-short positions placed on bitcoins (BTC) reached the highest level in over five months with the exchange of Bitfinex cryptocurrencies.

At the time of the press, the long positions of BTC placed on the exchange amounted to 33,750 units, for a value of 137.3 million dollars at current market prices, while the number of short positions is about 11,000 units less than 22.787 , now just under $ 93 million.

This creates the long-to-short ratio of about 1.5: 1 – the highest since August 6 last year.

Bitcoin shorts and shorts (Bitfinex)

The decline in short positions is not exactly surprising, considering that the price of bitcoin has fallen by around 50% between November 14 and December 14, giving operators ample time to lock profits while waiting for further opportunities.

A bullish technical inversion model known as "reverse head and shoulders" is also evident in the bitcoin price table, which could be another factor to scare bears out of the market for now.

Although the long / short ratio is at most multi-month highs it may seem encouraging for bitcoin bulls, the market will likely fall sharply if key support near $ 3200 is breached, as it would signal that the last corrective rebound to about $ 4,400 has ended.

This would put the market at risk of experiencing a "long squeeze" or a rapid closure of long positions, which could have a rapid and bearish effect on the price of bitcoins since the only way to end a long position is to resell the desired BTC.