Over these past couple days the big story has been the short sellers being at an all time high on Bitfinex. Historically we have seen a huge squeeze when the books are the unbalanced and I do not expect this time to be any different.
With the overall market being so bearish I am still being extremely cautious and will be waiting on the sidelines for further confirmation.
I need to see a daily close above $7,750 before looking for a bullish entry. That would break the longer term bear trend and confirm the falling wedge that started on 3/5
We are currently testing the 50 day moving average for support. If that holds it would be a very good sign for the bulls.
We also have what looks like an Adam & Eve bottom. Hopefully all of these factors can give the bulls the momentum needed to turn this thing around!
Happy trading and remember that following is free!