Traders Who Shorted Bitcoin From All-Time High $20,000 are Cashing Out: Is The Bottom is Near?
As bitcoin plateaus between $3,000 and $4,000, traders are cashing out on short calls made at $20,000 in late 2016. | Source: Shutterstock
In the past two months, several traders who shorted Bitcoin from its all-time high at $20,000 have started to cash out in the $3,000 to $4,000 range.
On February 12, a cryptocurrency trader with an online alias “Cryptofungus” revealed that he had closed a year-long Bitcoin short contract. The trader shorted the dominant cryptocurrency since $19,665.39. At the time of reporting, the price of BTC remains just above $3,500.
closing my $BTC short from 19,665.39 here
— Cryptofungus (@crypt0fungus) February 11, 2019
The closure of the trader’s Bitcoin short follows the publicized cash out of former International Monetary Fund (IMF) economist Mark Dow’s short contract on Bitcoin in December.
Speaking to Bloomberg, on Dec 18, 2018, Dow said:
I’m done. I don’t want to try to ride this thing to zero. I don’t want to try to squeeze more out of the lemon. I don’t want to think about it. It seemed like the right time.
A Low Enough Range For Bitcoin
Throughout the past 14 months of the worst bear market in the history of the cryptocurrency market, Bitcoin had some promising rallies that were acknowledged as a potential full-fledged trend reversal by many investors.
In February 2018, for instance, the Bitcoin price increased from $5,920 to $11,780 at its monthly peak, demonstrating solid momentum backed by a high daily trading volume.
Chart via TradingView
Three months after the rally of BTC from the $5,000 region to nearly $12,000,