Bitcoin [BTC] shorts reach all time high as bear threatens to squeeze the life out of the coin

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With the bear market reaching its tightest squeeze yet, Bitcoin [BTC] has seen a drop to its lowest level this year. The downward pressure seems to have the upper hand as the coin has slid 10% in the last 24 hours to trade at a price close to $3400.

Reflecting the power of the bear over the market, the number of open short trades for Bitcoin has reached an all time high. With over $3.1 billion in trading volume over the past 24 hours and dominating 31.8% of Bitcoin’s total trading volume, derivatives trading platform BitMex has taken the market away from the bears and given profits to the short traders.

With close to 40,000 being opened on the platform in order to execute short positions, the number of contracts continues to increase as the price of Bitcoin falls. They are positions created by traders trying to hedge their risk with the decline of the top cryptocurrency, as the long positions are currently being exposed to negative price movement.

The coin has been in a downward spiral since it broke the $6000 level in November, as it has now reached a yearly low of $3400. This creates a lucrative opportunity for short investors, as it allows them to leverage on the downwards movement of the coin.

This is done through a relationship between the investor and a lender, wherein the investor borrows a certain amount of the assets and sells them immediately. This is done hoping that a buy can later be executed when the price continues to move downwards, and return them to the lender for a profit.

With the number of short contracts continuing to rise, it presents a difficult situation for Bitcoin as it has multiple individuals looking out for the price of the coin to reduce. Moreover, as the market is full of whales who are ready to dump the coin at a moment’s notice, the potential for market manipulation in this fever pitch of the bear increases.

The post Bitcoin [BTC] shorts reach all time high as bear threatens to squeeze the life out of the coin appeared first on AMBCrypto.

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Disclaimer: This press release is for informational purposes only, the information does not constitute investment advice or an offer to invest. The opinions expressed in this article are those of the author and do not necessarily represent the views of CriptomonedaseICO , and should not be attributed to, CriptomonedaseICO .

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