Hello Crypto Crew,
I want to quickly point out the suspicious spike in shorts on 8.00, 2 Sep. 110k shorts were opened in a few hours. Price kept rising nicely for a few days until the sudden selloff from 7400 to 6300 in few hours.
I don't think it's a coincidence. I have a feeling this could a plan to short the lower top (7400ish) by the big guys, and cover the positions at the capitulation phase (4500-5000).
We might see the price dead bouncing to 6800 or so, but not form a higher high (unless the top guys are happy with covering at 6300ish, but unlikely as fud-potential is right around the corner with ETF delay again from 30Sep to dec. It'll get delayed 99% probability imho)
So a DCB (dead cat bounce) to 6800 would only occur to scare off other shorters I would say.
For now the most important aspect is to follow the shorts graph (BTCUSDSHORTS) closely and monitor any weird action (like big decrease in shorts and price not moving much, that'd mean top guys covering positions quietly, being happy with 7400-6300 drop gain)
Let's see what happens.
Don't forget to Like if you found this helpful. :)
I want to quickly point out the suspicious spike in shorts on 8.00, 2 Sep. 110k shorts were opened in a few hours. Price kept rising nicely for a few days until the sudden selloff from 7400 to 6300 in few hours.
I don't think it's a coincidence. I have a feeling this could a plan to short the lower top (7400ish) by the big guys, and cover the positions at the capitulation phase (4500-5000).
We might see the price dead bouncing to 6800 or so, but not form a higher high (unless the top guys are happy with covering at 6300ish, but unlikely as fud-potential is right around the corner with ETF delay again from 30Sep to dec. It'll get delayed 99% probability imho)
So a DCB (dead cat bounce) to 6800 would only occur to scare off other shorters I would say.
For now the most important aspect is to follow the shorts graph (BTCUSDSHORTS) closely and monitor any weird action (like big decrease in shorts and price not moving much, that'd mean top guys covering positions quietly, being happy with 7400-6300 drop gain)
Let's see what happens.
Don't forget to Like if you found this helpful. :)
Comment:
Oh btw, the black trendline is in the log graph in the link, not the linear graph i have here on the main page.
The question is how high can this DCB go?
The shorts are still at ATH, I'm expecting a little shake off is needed, but not below the 20MA (the original shorts spike at 7400 would still be holding).
www.tradingview.com/chart/ZXdmeoKf/
becuase I dont know how to take chart snaps to add to updates, ill post the link to the chart im following. You can see from that graph we have resitance at 6700 (20MA, if we stop there, thats a weak DCB, i.e market feel is very pessimistic, are not buying a reversal at all), 6800 (50MA), and 7000ish (the downtrend line that has been a super strong resistance so far)
To be honest, I'm watching the black trendline in that graph very closely becasue we hit it 5 TIMES since Dec crash, thats insane... so if we break that with volume, come and test it and bounces off of it with volume, bottom is in guys :)
so atm, no mans land for me, idk about you guys.
Dont forget to like if you think this was helpful :)