The bearish sentiment around bitcoin sank to three-month lows earlier today as short positions placed on crypto exchange Bitfinex fell to their lowest level since August 5th.
At approximately 11:00 UTC, the number of short positions dropped to 21,434, which represents a 33 percent drop in the past eight days alone. During the same time, longs – or positions that are betting on an increase in bitcoin's price – also witnessed a notable increase of 10 percent, the current number of which (24,410) marks a three-week high.
Indeed, the sentiment here seems to be shifting in favor of the bulls. The price of bitcoin broke bearish from a historically tight, two-week range of just $139 on Oct. 29, yet sellers were not able to further capitalize on the bearish outcome.