$BR
Shorting Here Could Be Risky. So guys, take a look at the latest data on $BR .
Open Interest has gone up a lot. A few days ago, OI was around $10M, and now it’s close to $50M. This means a lot of new positions have entered while the price was moving up.
Now look at the short positions.
Around 82% of traders are short, while only around 18% are long. Even on the 1-day timeframe, around 80% are short.
This is where the market psychology gets interesting.
After seeing $BR move from around $0.20 to above $0.70, many traders may think:“It has already pumped too much. Now it should dump.”
So they start shorting.
But when almost everyone is short, the market can sometimes move up first and surprise them.
If $BR moves higher again, many of these shorts could get liquidated. Those liquidations can create more buying pressure and push the price even higher.
So I would be very careful shorting #BR here. With OI still close to $50M and around 82% shorts, I think another short squeeze could happen before we see a bigger correction.
Just my personal view based on the data I’m tracking.NFA. DYOR.
Shorting Here Could Be Risky. So guys, take a look at the latest data on $BR .
Open Interest has gone up a lot. A few days ago, OI was around $10M, and now it’s close to $50M. This means a lot of new positions have entered while the price was moving up.
Now look at the short positions.
Around 82% of traders are short, while only around 18% are long. Even on the 1-day timeframe, around 80% are short.
This is where the market psychology gets interesting.
After seeing $BR move from around $0.20 to above $0.70, many traders may think:“It has already pumped too much. Now it should dump.”
So they start shorting.
But when almost everyone is short, the market can sometimes move up first and surprise them.
If $BR moves higher again, many of these shorts could get liquidated. Those liquidations can create more buying pressure and push the price even higher.
So I would be very careful shorting #BR here. With OI still close to $50M and around 82% shorts, I think another short squeeze could happen before we see a bigger correction.
Just my personal view based on the data I’m tracking.NFA. DYOR.
