Massive short interest in BTC, data in post

https://datamish.com/btcusd/7d

Yesterday, 6.4k BTC in shorts was opened. This means that presumably hedge funds have borrowed BTC at a probable price above 36k based on the time of the short interest.

The last time large short interest occurred was May 17th where 11k BTC were borrowed leading up to the May 19th crash.

Large short positions mean the hedge funds will try to drop the price of BTC and buy back cheap to return their borrowed BTC.

Assuming the 6.4k BTC was borrowed at approximately 36.4k on average, we can roughly estimate 233 million dollars was used to short.

44k BTC are in longs. This is even more BTC in long positions than May 19th. If shorts were able to drive the price of longs down to liquidation, we could potentially see an even bigger crash than May 19th.

233 million by itself can probably only bring the price down by 1%. However, given the nature of margin trading, other exchanges to short from, timely pieced news articles from China and Trump, shorts could attempt MASSIVE long liquidations very soon.

Conversely, we could see a large upward movement if there is enough buying pressure from retail investors.

Please help spread awareness about short interest.

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EDIT * wrote this in the comments thought it was relevant, description is rough but the logic is real. Also removed my comments about a short squeeze because people here are obsessed with straw-maning.

Do you have any idea how much money it takes to move the price of BTC by10%? No institution would have that kind of capital to gamble on 1asset of their portfolio.

It actually takes far less than you would think to move the price. First you have to realize roughly only 3 million BTC is in circulation on exchanges. About 10 million is in cold storage and an estimated 4 milllion is lost and 1 million is in Satoshi wallet. So while the market cap is 650 Billionish, the real marketcap in play is more like 99 Billion. Then you take into consideration that most volume is derivative bots who go with trading flow and do not have unlimited funds and you see that if you pressure momentum correctly you can drive price down using their cycles to assist you.

What really drops prices are long liquidations. So what is possible and looks like it's been done before, is you soften up the price action with some fud news, drop price slowly, then use the borrowed bitcoin and held bitcoin to sell at once causing a large crash with the longs being chain liquidated before you buy back in. The chain liquidations require the setup selling to have been at least somewhat impactful.

TLDR

Let's be realistic though. The pieces are in place for another drop like May 19th. There is BS news from Trump and China to so panic sellers can cling to those reasons. Given the data, if you're the average guy, it might be a good idea to prepare for a significant drop. Large amount of long positions opened mean chain liquidations can occur. I'm personally not selling because I like the coin.