Market Update - 23 May 2019 - '10,000+ BTC Short Position'

Bitcoin Price: $7660 (23 May 2019 3:08pm)

Dear valued/clients,

With Bitcoin sitting at $7660, we are well and truly into the next market cycle for Bitcoin.It has been an enthusiastic month for the price of cryptocurrency. In this article I will break down some of the key indicators we have seen at Caleb and Brown.

Key Points:

• Bitcoin's Price has moved into a strong rally, primarily driven by short liquidations.
• I between $7200 and $8300, these are the key levels to watch before we have solid indication of the next trend.

Key points indicating the movement of 10,000+ BTC Shorts

Reviewing the price movements this month, we saw a soliduptrend emerging from $5300, increasing steadily to $6000.

This was further fuelledby a large number of open shorts putting pressure on the buy side, this opened up the market from $6000 to $7200USDon the 10th of May. From $7200 we saw a dramatic increase to over $8300 USD primarilydriven by short covering.A small correction on the 16th of May saw a massive sell-off of shorts. This indicated that one trader had an open 10,000+ BTC short position which was fuellingthe rally prior.This one trader accounted for approximately 37% of the shorts on Bitfinex which appears to have been accumulated since April.

We've analysed hislosses to be in the rangeof $23M USD for betting against Bitcoin. From this major position close, long volume has since moved greater than shorts.Following this on May 17th, we saw a rapid sell-off that triggered the price to fall to $6600 before quickly recovering to the $7200 range.

This past week shows that the near term support is at $7200, and short term resistance lies at $8300 which we۪ve tested twice. With volatility so high, it۪s likely we won۪t stay within this support and resistance for long.

Jackson has over five years experience inCryptocurrency Trading and founded one of the firstmanaged Cryptocurrency Investment Trusts in Australia, Bit By Bit Capital. Jackson currently acts as COO for__Caleb and Brown_, CIO for Bit By Bit Capital and hasfeatured frequently on Sky News, The Herald Sun, The Australianand other major News outlets as a leading expert oncryptocurrency analysis.

Whether you are new to the market, or a seasoned trader, Caleb & Brown can help to realise your goals. Call us on +611800 849 149 or Contact Us to discuss further.