Bitcoin Forum

Pretty interesting read -> http://www.zerohedge.com/news/2016-05-08/mother-all-short-squeezes-looms-bitcoin

I partially skimmed the article, and it seems like a fairly good read for anyone interested in economic reports/detailed analysis of the current Bitcoin value and all the other wonderful things.

I'm probably going to dive deeper into this, and read more about it when I have the time. It seems like things are looking up for Bitcoin at this point, and it might be starting to get exciting.

Good read and frankly, I've seen it buried in the Wall O thread as of yesterday. That said, the future is coming fast and all the fun with it. This is when Bitcoin shocks and awes in such a big way so I recommend a major buy at this point. Alongside that, LTC is about to fly super high. So both.

Interesting. What's your argument for being so bullish on Litecoin?

Not read it.

My understanding of 'short squeezes', is that there has to be a shit ton of short positions open in a particular asset class before a short squeeze can actually happen. Going by Finex swap data alone, on the 12th April, when Bitcoin was pressing up against $430, there were almost 18K BTC of swaps (margin shorts). Over the following 2 weeks that number reduced itself to 11.5K BTC, thus some 6.5K BTC of short covering helped propell the price up to the $470 range. There are currently 13K BTC swaps open. This isn't a typically high number, infact, it is very 'middle of the road. I would say that Bitcoin has already had it's 'short squeeze' and if this is going to pump higher, then there has to be a flood of new capital flood onto the Bitcoin exchanges. 90% of the weak hand shorters are already out.

If you look at BTC USD swaps (margin longs) data however, that tells a very different story. Currently just under $31.5 million worth of USD swaps on Finex. The record is $32.8 Million, which was hit on August 16th 2015. Go and have a look at how Bitcoin done after that date, and what happened to all those margin longs.



If Bitcoin pumps, then Litecoin pumps. No good reason for it. It just does. Just one of these self fulfilling prophecies.

Perhaps you should.

VC interests towards bitcoin the currency have been fading for years already, while interest towards using the blockchain technology for something practical has risen.
Bitcoin bagholders and general religious nutters try to make it look like the use of blockchain technology for other practical solutions, will also raise the value for bitcoin the currency. Well, that just doesn't make sense in my perspective.

Litecoin has appreciated relative to bitcoin in the last couple of weeks.

No. If someone is selling a story based on a Short Squeeze, then I want to see a big pile of open short positions, and I am afraid that I don't.......

......I do see a big pile of open long positions though!

Most Bitcoin veterans are already aware of the key points of this article. What is missing is timing, and with the impending halving, it could be the catalyst that switches on the next bull market. FOMO is a big emotion here.

My eye's hurts when i read all those comments...Is it really hard for the sheeps to read/understand the article?

I also see on other media that ppl still bashing Bitcoin even when the media are reporting good things about Bitcoin.

That was a long read. I'd have to add from the article that if indeed the government started hoarding bitcoins, not only that the bitcoin price will go up, they would also be able to monopolize it. Although it would be a really good publicity, I'm not sure whether it would be good for us.

I didn't get the point about miner margins being healthy.
The last time this author penned a bearish article, the price was around similar levels of $450.
So shouldn't miner margins be pretty much the same? If anything they should decline because of the increase in difficulty and corresponding capital cost..

Well this is the typical zerohedge crowd. They only love precious metals and are way more crazy and paranoid than we are already. :D

Don't underestimate religious nutters,  my friend.  As long as people believe in bitcoin it'll have a future.  What the VCs throw their money at doesn't concern me.

Purported faith != faith, therein lies the rub.
99% claiming to love BTC on this forum don't have a pot to piss in -- make a few funbux by spamming the piss out of this place with their shitty signature ads & immediately lose that lint to the very dice sites that pay them to be human sandwich boards.
Bonus: divide the number of bit believers by 20, that's how many accounts an average ad whore has.