100 million shorts were liquidated yesterday and sent the price to around 39k. Since then it has consolidated and seems like it has broken above the white trend line. The next major resistance is 45k near the red downtrend line. This is it, if BTC ever wanted a chance to reverse the downtrend early this would be the primary scenario.
If we have seen the start of a downtrend reversal BTC will look to test the red trendline and consolidate for a big break out of the downtrend. Ideally, you would like to see squeezing around the 40-45k level, followed by a decisive break to the upside. If BTC plays out in this manner and breaks out of the downtrend the final big target will be around 75k. This is the best-case scenario and under the assumption, we are seeing a bullish reversal.
There are MANY uncharacteristic factors about this pump that makes this move the most interesting to me. We did not see a liquidation of longs under 28k and yet we still have seen a 10k run in the last week. Every bull who bought the fear out of pure hopium is sitting very pretty right now. As we have seen a decisive target to kill the bears, I would not be surprised by a decisive target to kill the bulls now. I do not like that the volume spike was in direct correlation with the squeeze and wasn't at the bottom. Just as when the bulls get liquidated at the bottom and a rise is expected; when the bears get liquidated at the top is a drop expected?
If BTC gets rejected near 41k then this would confirm we are still in the range and this pump was just to touch the top of it.
~Next target will be 45k. If BTC holds the white trendline break, it will likely consolidate to break the strong red downtrend. If we see a break of the red downtrend, the end target will be 75k.
~If BTC fails to hold above the white trend line or gets rejected by the red downtrend line, it will likely go to retest 32k after some time. And the downtrend is likely to continue.
Nonetheless, my realism wants me to believe there is more downside to come but my intuition tells me something is unique about this pump. Many indicators are moving in different ways since the drop and are looking bullish. RSI is holding momentum strong short term and honestly who knows when it runs out of gas. If anyone is confident in price action at this moment, question them immediately and do your own research.
Thank you! Comments are more than welcome;
If we have seen the start of a downtrend reversal BTC will look to test the red trendline and consolidate for a big break out of the downtrend. Ideally, you would like to see squeezing around the 40-45k level, followed by a decisive break to the upside. If BTC plays out in this manner and breaks out of the downtrend the final big target will be around 75k. This is the best-case scenario and under the assumption, we are seeing a bullish reversal.
There are MANY uncharacteristic factors about this pump that makes this move the most interesting to me. We did not see a liquidation of longs under 28k and yet we still have seen a 10k run in the last week. Every bull who bought the fear out of pure hopium is sitting very pretty right now. As we have seen a decisive target to kill the bears, I would not be surprised by a decisive target to kill the bulls now. I do not like that the volume spike was in direct correlation with the squeeze and wasn't at the bottom. Just as when the bulls get liquidated at the bottom and a rise is expected; when the bears get liquidated at the top is a drop expected?
If BTC gets rejected near 41k then this would confirm we are still in the range and this pump was just to touch the top of it.
~Next target will be 45k. If BTC holds the white trendline break, it will likely consolidate to break the strong red downtrend. If we see a break of the red downtrend, the end target will be 75k.
~If BTC fails to hold above the white trend line or gets rejected by the red downtrend line, it will likely go to retest 32k after some time. And the downtrend is likely to continue.
Nonetheless, my realism wants me to believe there is more downside to come but my intuition tells me something is unique about this pump. Many indicators are moving in different ways since the drop and are looking bullish. RSI is holding momentum strong short term and honestly who knows when it runs out of gas. If anyone is confident in price action at this moment, question them immediately and do your own research.
Thank you! Comments are more than welcome;