The chart is drawn from the crossover triggers on the 'Wave Comparison' indicator, the purple line in the indicator shows how far above the BTC/USD close is above a long moving average (234), the red line (horizontal one in the indicator) shows how far above the number of SHORTS on Bitfinex are above the same moving average on the same time resolution.
I have marked the crossover points as vertical lines on the price chart to see if there was any correlation between the price and the number of shorts being entered, I beleive that these areas on the chart indicate the emotional sentiment of the market at the time, I also find it very interesting how the price and sentiment react to eachother so I thought I'd try and neaten up the chart and share it!
If there are any similar analyses please share, as I'm no professsional and I'd love to see others view on this, particularly at this point in time given the recent stunt BITMEX just pulled :)
I have marked the crossover points as vertical lines on the price chart to see if there was any correlation between the price and the number of shorts being entered, I beleive that these areas on the chart indicate the emotional sentiment of the market at the time, I also find it very interesting how the price and sentiment react to eachother so I thought I'd try and neaten up the chart and share it!
If there are any similar analyses please share, as I'm no professsional and I'd love to see others view on this, particularly at this point in time given the recent stunt BITMEX just pulled :)
Comment:
just got interesting :)
