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Reading Bitcoin Sentiment | Long vs Short Positions

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The first video in my sentiment reading series. This video covers how to analyze long vs short margin positions using two rules. The 60%/40% rule and the position spike rule. Sentiment Cheat Sheet: https://goo.gl/6gdtUr Join Coinbase with this referral code for $10 free of Bitcoin after making a trade of $100 or more! : https://www.coinbase.com/join/5a261777dce5a8011ba23007 Timestamps: Why makes an asset rise/fall?: 0:50 Spotting reversals using 60/40 rule : 3:37 Spotting Healthy vs Unhealthy Position Spikes: 7:23 Suggest a video on Patreon: https://www.patreon.com/BitcoinTradingChallenge Site used: https://www.bfxdata.com/positions/btcusd An even better Sentiment Provider than BFXdata: https://datamish.com/dashboard/db/btcusd?refresh=10s&orgId=1 The Platform I use to Trade - https://exchange.gemini.com/ The Website I use for Analysis - https://cryptowat.ch/gemini/btcusd My Discord Chat: https://discord.gg/MSrNkbg _________________________________________________________________________________________________ Disclaimer: The content covered in this video is NOT investment advice and I am not a financial advisor. The material covered within these videos is for educational purposes only. Always do your own research and only invest based on your own findings and personal judgment. Happy Trading!
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Text Comments (89)
jurgen vanneste (1 month ago)
Nice content! Do know an alternative for bfxdata to find such a graph? the site is down...
Moritz Hemmerlein (2 months ago)
Amazing insights, thanks alot
anthony bacchus (2 months ago)
Really love and appreciate your style of teaching. I went to bfxdata.com and the site has been down since last month. So I went to datamish.com Can you make a short video on how to use that platform to trade?
Houssam Zak (2 months ago)
You are the real deal, so glad I subbed and discovered your channel
Pimmie H. (3 months ago)
is bfxdata.com legit????? I get a warning
Try datamish.com
Francesc Nualart (3 months ago)
BFXdata.com is down... Possibly forever...
Check out datamish.com
Guilherme Magalhães (4 months ago)
BFXdata isn't working anymore.
Try Datamish.com
Rami Janoudi (4 months ago)
Hey Bennet, what about a situation like where we are now, where its about 60/40 in favor of longs, but we're already in a downtrend? How do you interpret that? Does that still mean price is likely to drop or does that only apply during run ups?
abdallah elshamey (4 months ago)
Jorge Osorio (5 months ago)
Great tool to help in our trades... Thank for sharing men! Here u have a new follower
Lisanne Buma (5 months ago)
With the BFXLS100 indicator I can't find any oversold, 60% short readings
Lisanne Buma (5 months ago)
If I only select the second line, I still don't get any 60% (shorts) oversold readings.
You can find it if you only select the 2nd line within the settings of BFXLS100.
ycnexu (5 months ago)
I can't believe how great you are at explaining this! I thought I'd give it 2 seconds and was hooked. But why film in a restroom?
The room is a video editing room, not a restroom but haha. Others have commented that the space looks like a prison, its hilarious
John Wu (5 months ago)
Great video, thanks man! One question - I see the 60/40 rule works well with identifying bottom, but what about the top? Does it work for the top as well?
Crypto Trading (7 months ago)
The sentiment link in https://www.bfxdata.com/orderbooks/btcusd is no more working for BTCUSD
Padmavathi Chintalapati (7 months ago)
How can long positions be greater than short (or viceversa) when trading is zero sum game. I trader futures in stock markets where long positions are always equal to short. I am surprised how its diff in BTC context. Can someone throw light on the same?
Because there are lenders, who decide either to lend their BTC (so that traders can go margin short) or lend their USD (so that traders can go margin long). That is how traders are able to buy and sell on margin.
MehrPower (7 months ago)
But still, how is it possible that the margin long positions and the short ones are not equal. Even with futures, if you have no seller, you cant buy...
Sure - what you are seeing with the sentiment is the number of margin longs and shorts. That means the longs and shorts will not be equal as each margin long and short enters a position by paying an interest rate to a lender. We use this sentiment data because it represents the retail traders who take on more risk, giving us a great emotional representative of the more gambler-esque trading crowd.
idbeentaken (7 months ago)
You got me hooked! new follower, great vid!
Inderpal Singh (8 months ago)
https://www.okex.com/future/futureTop.do?type=1&symbol=1 I use this
Matthew Clifford (8 months ago)
Hi, Great video series! How do I get to see the live long v short v bitcoin price sentiment data on bfxdata - the sentiment data stops on 19th Jan, but the price data is live.
Matthew Clifford (8 months ago)
Awesome! Yep, I've got percentage values now... very very cool ands much more useful. I will go back through your video tutorials and see if I can spot the patterns you're showing us. Thank you so much - great to have this to work with. Thanks again!!
After you get BFXLS 100, then go to the settings. Deselect the first and the third line, you now have two % sentiment lines.
Sure, Type in 'BFXLS 100'. That will display 4 values, 2 raw sentiment values and 2 % values.
Matthew Clifford (8 months ago)
Thanks for replying - I've got BFXLS on TradingView, which I use daily, but I can't find a way to show the sentiment percentages instead of the long/short values. It's bfxdata.com that doesn't appear to be showing the live data - do you know how to 1) get bfxdata.com to show the live percentage data, or 2) get percentage values in BFXLS on TradingView? Thanks for helping.
Go to Tradingview. Then type in 'BFXLS' in the indicators section.
Kikuchi K (9 months ago)
Long / Short ratio is now 70%/30% after the heavy fall. Does it mean the price can go even lower?
Ben Scales (9 months ago)
Thought you might be interested in seeing this website too - great amount of bitcoin trading and transaction data https://data.bitcoinity.org/markets/bidask_sum/6h/USD/bitfinex?bp=10&bu=c&t=m
Thanks for the link!
Jonatan Castro (9 months ago)
I'm having a hard time understanding how people do short positions. The main reason is that I haven't seen any exchange (GDAX, Binance, etc) that let you put yourself short (meaning you first sell high and then buy low). I've done this on my broker through CFDs on stocks but I have no idea how people do short positions on crypto in general??
Jonatan Castro (9 months ago)
aaahhh okay! I was really going mad thinking how the hell people were short on BTC haha. Thanks man!
Bitfinex (where the data comes from) is an international exchange where shorting is allowed.
Ben Scales (9 months ago)
Alas, the BFXdata.com website will not load up the BTCUSD Sentiment page without crashing. Presumably can't handle the amount of traffic...
C A (3 months ago)
can you do a vids on theses to Tradingview datamish.com thanks
Chris Ferrell (4 months ago)
Try BFXLS100
Luca Costabile (7 months ago)
I cannot find this indicator on TradingView. could you suggest the exact name? great video...following!
Try out the datamish.com site.
Samuel Evans (7 months ago)
Thanks for the video.. I can't get the website to load up either. I have looked at the Sentiment overlay on Trading View as well but cannot make sense of it. It's not showing the short/long data in percentage terms as in your video. Can you help on this?
Brandon (9 months ago)
price spike up + spike in longs = buy price spike down + spike in shorts = ??
Chris Ferrell (3 months ago)
And conversely, a spike in shorts during an established downtrend = a buy?
It depends on the market state. If we see a breakout then a spike in longs is a buy. If we see an established trend than a spike in longs that would be a sell.
Jason G (10 months ago)
For some reason, it looks like the data on ETHUSD has been frozen since the day of your video (probably a coincidence). Are you still using it for sentiment analysis? https://www.bfxdata.com/positions/ethusd
Jason G (9 months ago)
Thanks. I appreciate you replying.
Bitcoin Trading Challenge (10 months ago)
Hi Jason - I now use the sentiment overlay onto Tradingview. It looks like this: https://www.youtube.com/watch?v=byPmn75Pp-8
Trading Expert (10 months ago)
great videos u do!
kitsura (10 months ago)
The BFXdata long vs short page doesn't load just shows a spinning status.
Bitcoin Trading Challenge (10 months ago)
It will only load on cryptocurrencies such as BTC/USD, ETH/USD, LTC/USD. Try opening Tradingivew in a different browser if it still does not work.
kopfstandsnoopy (10 months ago)
All I find is the indicators say it should go down and btc just keeps going up. Doesn't seem to work.
Bitcoin Trading Challenge (10 months ago)
You have to interpret sentiment into a trend. If price is breaking out to the upside for example - then you must see a spike in bull positions and a mass exit in bear positions. However, what you are referring to is when price is clearly established in an uptrend and then you see a spike in longs and a mass exit in bear positions - that in turn would be quite bearish as it indicates an overbought market top. If curious about more live reading sentiment: check out the livestream I made (https://www.youtube.com/watch?v=N1pD4R4a_I4).
Jorge Vianello (11 months ago)
Since more than four days the long-short positions in BTC are more than 60-40... when the BTC will start to fall?
Bitcoin Trading Challenge (11 months ago)
With a massive spike in volume that is respected by the market.
Han Zhuo (11 months ago)
Also , iv been trying to look for Sentiment data for Forex, however its not looking quite similar, do you have any suggestion where to find them ? Thanks again
Sure, send me an an email at my business account and I will send you the data: [email protected]
Kenef Yang (8 months ago)
Hi, could you send me the site for forex sentiments as well. The only thing i can think of is using commitment of traders data. Many thanks.
Bitcoin Trading Challenge (11 months ago)
I do know of a site for reliable sentiment for Forex - I will email it to you and we can discuss how to interpret it.
Han Zhuo (11 months ago)
Thanks for the video, thanks for sharing. Is it possible for you to do a short video on Market Depths and its applications? i know its basic but iv never seen a great video or material has been done towards that subject. alternatively please suggest some material that you think its great to look at. Appreciated XD
Jan Pahulje (11 months ago)
Short position is now around 35% and BTC is still growing. Should it not fall because market is overbought?
Math Tutor (11 months ago)
Looking at the 7day, Bitcoin volume has stayed above 60% long positions for almost 2 days. Price has moved up over $1,000. This suggests a dip is coming, right?
Chris Ferrell (9 months ago)
Right you were. Nov 29th was an insane day
I AM Groot (11 months ago)
Buddy ... This is top-notch stuff !!
Bitcoin Trading Challenge (11 months ago)
Michael MacLean (11 months ago)
Thank you for the video. You have a great way of explaining things. So glad I found your YouTube.
Bitcoin Trading Challenge (11 months ago)
Thanks for the comment!
Tripp Schoff (11 months ago)
Look at the bfxdata now - shorts went from mid 50’s to low 30’s overnight. I think we all know why...
Lisanne Buma (5 months ago)
I want to see that massive buy volume spike. But the website doesn't work and on the volume indicator on tradingview I can't see a mass volume spike
Lisanne Buma (5 months ago)
I don't get why the BTFdata site doesn't work for some people
Tripp Schoff (11 months ago)
Bitcoin Trading Challenge yes - and looking at b cash its just value being transferred. 5900 was broken with ease last night and buys were wiped out fast. Yes it bounced but given that price action does 5k and that 68.2% level seem more likely now.
Bitcoin Trading Challenge (11 months ago)
Yes I saw that on BFXdata. If you also look at the chart below it on that site you can see a massive buy volume spike. Why? Shorts covering their positions at a profit (this has to be the case for the massive drop off in shorts occurs at the exact same time of the buy volume spike).
Ivan Gunchev (11 months ago)
Awesome content! I've dismissed the BFXdata a few times just because I couldn't make any sense of it by myself. This video helped greatly. Thanks for the effort.
norzipd (11 months ago)
Amazing video! Very well explained. Do you think it would be a problem to use the BTC/USD data while you're actually trading in EUR?
norzipd (11 months ago)
Thanks! That makes perfect sense.
Bitcoin Trading Challenge (11 months ago)
I would say that you would have to first study the correlation rate between BTC/USD and BTC/EUR. If you find a high correlation rate, then you can absolutely use this strategy.
fredi1356 (11 months ago)
Very convincing! Thank you for your great analysis.
Glub Glub (11 months ago)
This is really great, thanks man....great delivery. You’re a sharp dude.
Andres Grams (11 months ago)
Hey gonna do videos about bots ?
Andrey D (11 months ago)
what about other pairs like LTC/BTC and ETH/BTC? LTC most time seats on 70-80/30-20 ratio. How to use this tool?
Andrey D (11 months ago)
Thanks! Very useful video. Like! )
Bitcoin Trading Challenge (11 months ago)
Good question. Yes, the smaller the market cap a coin has - the more extreme the ratios for overbought and oversold levels will be. I would put Ethereum's extrema %'s at 65/35 and or 70/30 depending on the recent price volatility.
Adam (11 months ago)
Wow your videos are great. Keep up the good work! I would definitely get my friends to watch your videos too.
alexcorneanu (11 months ago)
Your explanation on oversold and overbought is crystal clear. Thanks for making these videos. How do we determine a trend? Looking at these percentages is enough?
Bitcoin Trading Challenge (11 months ago)
Thanks. My second video of this series will talk about how we can determine a trend. Looking at the long/short %'s is a fantastic sentiment bias indicator however that can be paired with many strategies.

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