Good morning traders. Price continues to grind higher as expected with short sellers rigorously defending their positions above $5400 and $5600 but demand remaining relentless. As a result, price has now pushed through the blue TR's resistance. Having hit our first target, multiple targets still remain based on the patterns formed over the past week or so. The next target at $5435 is based on the ascending triangle and allows price to fill in the Bitstamp 1H gap at $5392.75 that was left as price dropped after the Tether news. But don't get too excited about shorting there as the CME Bitcoin futures gap remains at $5500 with the CME price tracking Bitstamp's price almost exactly. Would it be wise to short there?
Here's the thing, price hitting $5500 necessarily puts recent short sellers under water. With Bitfinex Shorts showing bearish divergence in highly overbought territory (with Stoch RSI recently topped out) and Bitfinex Longs just now leaving oversold (with Stoch RSI recently bottomed out) a sudden price move toward $5500 has a good chance of initiating a local short squeeze. But, as mentioned before, this would likely push price into the $5600s which would most likely begin a much larger short squeeze of November 2018 short positions. Shorts they have reached their double bottom target and Longs are printing a descending wedge of which they are recently bouncing off the bottom.
A quick look at this 1H chart shows us that price is currently finding support on the TR's resistance but it is also nearing the ascending channel's support. If that support fails to hold, then we could potentially see price targeting $5200/$5220 at the top of the demand zone. However, I would expect to see a bounce from there. If the support holds, then we should expect to see price target the top of the ascending channel which gets it to that $5500 level at the EQ of the November supply as well as just above the R2 pivot. This continues to seem like the most likely move, but traders who are entering in this area absolutely must have a good grasp of risk management otherwise they are gambling at best whether they are longing or shorting here.
Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life.
Remember, you can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.
Here's the thing, price hitting $5500 necessarily puts recent short sellers under water. With Bitfinex Shorts showing bearish divergence in highly overbought territory (with Stoch RSI recently topped out) and Bitfinex Longs just now leaving oversold (with Stoch RSI recently bottomed out) a sudden price move toward $5500 has a good chance of initiating a local short squeeze. But, as mentioned before, this would likely push price into the $5600s which would most likely begin a much larger short squeeze of November 2018 short positions. Shorts they have reached their double bottom target and Longs are printing a descending wedge of which they are recently bouncing off the bottom.
A quick look at this 1H chart shows us that price is currently finding support on the TR's resistance but it is also nearing the ascending channel's support. If that support fails to hold, then we could potentially see price targeting $5200/$5220 at the top of the demand zone. However, I would expect to see a bounce from there. If the support holds, then we should expect to see price target the top of the ascending channel which gets it to that $5500 level at the EQ of the November supply as well as just above the R2 pivot. This continues to seem like the most likely move, but traders who are entering in this area absolutely must have a good grasp of risk management otherwise they are gambling at best whether they are longing or shorting here.
Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life.
Remember, you can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.
