Bitcoin: Possible Short Term Rally (Short Squeeze)

This is a scenario that *may* play out in Bitcoin. Since December 2021, Bitcoin has been in a tight linear regression channel - and we are nearing what has been a rally point historically in this move. Right now till the beginning of August is also seasonally bullish in the Bitcoin markets, so many factors suggest a short term rally beginning in the next week or two to top around $35k near the end of July before the next leg down - which could take us as low as $7500.

As always, use stop losses, and don't use more than 2x leverage. Stop losses to be placed below the channel as these things do get broken all the time.

Trade closed manually:

Closed manually because we are near the end of historical bullish seasonality (see bottom chart). We didn't hit our target, but we made a nice profit nonetheless. Historically, Bitcoin has peaked near the middle of August before a September-October dip. This played out in bullish years like 2021, 2020 and even 2017 as well as bearish years like 2019 and 2018.