BITFINEX:BTCUSD is coming off its rally now on the denial from Amazon NASDAQ:AMZN that it will not accept Bitcoin. Prior to this the run up has been labeled a "short squeeze" as that term has become all the rage in 2021. It did in fact qualify as one seeing as how over 60% of leveraged short positions have cleared out in the bullish move.
From a contrarian perspective... clearing out the leveraged shorts actually increases the probability that a break of the consolidation lows (sub 30k) will induce a violent "long squeeze."
Norok, you are spot on! It's evident from your quality posts that you have been around and seen many markets and a lot of charts. In this case, the most to win is by squeezing the longs and force a violent move below 30K. I'm on the sideline for now, but I bet you are right and a move below 35K level will prompt me to open a short. Keep up the sound and prudent posts!
norok
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@Moschi-san, I've been around long enough to internalize the lesson of "Trading In The Zone" that "anything can happen". It seemed like a break lower was "obvious" but very often the obvious direction is not what a market takes. This wisdom kept me neutral over the last few weeks but continuing to make readers aware of the looming structural problem.
The greatest reward-to-risk trade remains to the short side. Even if leveraged short traders were stopped or liquidated on this move, as many likely were, it was not "wrong" from a strategic view to have taken the trade.
Mihai_Iacob
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Keep them coming
CalmLikeCrypto
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Norok! Could you please analyse BTC again? I would really appreciate it... Please with a video. ;-)
norok
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@CalmLikeCrypto, I do a Livestream on Tradingview every 4pm Eastern... I'll definitely cover it here and it will be saved for later viewing!
watchtrend
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thanks for your update
Clevortrevor
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I bought the dip and I'll buy it again.
Waltellar
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@norok , not a surprise for me that you would be pointing the fact in your post, as well a quite expected same kind of trick remaining to be played on some nice big red wick we haven't seen yet ...
thank you anyway for all your work and researches
prefabsprout
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you say this as if we werent going to retest 33-35 range again anyway. this was just the catalyst for the next likely move. it wasn't like we were going to just blow past 40 and we will definitely meet stiff resistance at 44-45.
if we break down from 33-35 and then break down from 28 then we got some troubles. until then no reason not to keep DCAing. now back to our scheduled sideways.