I think we may soon see a short squeeze - see my previous post. It think this may immediately bring the price of BTC to its 55-week EMA (the blue line in this chart). From there the rally may continue until the price touches the 244-week EMA (the red line in this chart), from where the price would again sharply come down, confirming continuation of the downtrend. From there we may slowly grind lower below USD 5,000, perhaps between USD 3,000 and 5,000, in the coming months. This would present great buying opportunities for long term investment in BTC, in my opinion. If this would be your strategy, then incremental buying is the way to go. Good trading.
Comment:
I need to correct 2 typos in my post: the EMA's that I'm talking about are daily EMA's, not weekly EMA'. So, it's about the 55-day EMA (blue line in this chart) and the 244-day EMA (red line in this chart). I'm sorry about the confusion.
Comment:
Short interest has much decreased recently, so I'm not expecting a big short squeeze anymore.
Comment:
Long interest on Bitfinex (the opposite of short interest) is very much on the rise again, and approaching all time highs. So, I would think that bulls are being trapped and will soon be taken out by just another sell-off in BTC and another leg down. So, I'm thinking that this present rally in July may soon come to an end, perhaps towards (and before) the end of this month.
Trade closed: target reached:
It looks like August is going to be a down month again.
It is all Fibonacci.