Despite Bitcoin’s (BTC) efforts to surpass the $60,000 mark over the weekend, it faced a strong rejection and subsequently fell to $58,000.
The exact reason for this decline remains uncertain, but cryptocurrency investor HODL15Capital suggests that increasing short positions may be to blame.
In a post on his X account, HODL15Capital observed a sharp rise in Bitcoin short positions across multiple exchanges as soon as BTC hit $60,000. He highlighted a significant imbalance on platforms such as Deribit, Bitmex, Bitfinex, Kraken, and HTX.
HODL15Capital also noted a rise in Ethereum short positions and pointed out that highly leveraged short positions of 50x and 100x on Binance might soon be liquidated, potentially signaling a market shift.
“Bitcoin shorts have become quite aggressive across many exchanges,” he stated. “I predict all 50x and 100x leveraged shorts on Binance will be wiped out soon… See you guys…”
According to HODL15Capital, the data suggests that Bitcoin short positions may soon be liquidated, indicating a potential increase in Bitcoin’s price and a market shift.
“My guess is all those 50x and 100x leveraged shorts on Binance will be wiped out soon. We see you lads,” he tweeted.
— HODL15Capital 🇺🇸 (@HODL15Capital) August 19, 2024