As heavy volume came in with a lot of leveraged shorts underwater from sub 6.8k, the nonstop stop haunt has made bitcoin rally to these new levels. Some might have insisted and probably added more leveraged shorts, creating more and more liquidity for a higher push. This phenomena is called continual short squeeze.
These continual short squeezes end up with high wicks and moderate consolidation before flash crash as longs get trapped--creating liquidity for short-sellers. And as for playing the rally, some might start buying altcoins at the tip for a quick trade until before bitcoin starts taking over dominance and crashes. Others will likely add shorts (leveraged shorting is not recommended) at the 0.38-0.23 fib levels or specifically at 8.5k-8.6k region.
why 8.6k region as bull target
- a lot more shorts are underwater
- liquidity left
- 0.38 fib not tested yet
why 8.6k might hold as resistance
- rsi overbought heavily
- parabolic short squeeze
- once liquidity runs out, trend reverses/pauses
As for plans:
watch volume and add shorts at 8.6k region with caution(no leverage). watch daily close. if SL at 10k and short target 4.7k -->45/15 ratio.
Note: a break of 10k at any point this year would indicate new all time high.
Note: a retest and break of lower low would indicate no new all time high until long range consolidation
Keep at it
@AresTrade
These continual short squeezes end up with high wicks and moderate consolidation before flash crash as longs get trapped--creating liquidity for short-sellers. And as for playing the rally, some might start buying altcoins at the tip for a quick trade until before bitcoin starts taking over dominance and crashes. Others will likely add shorts (leveraged shorting is not recommended) at the 0.38-0.23 fib levels or specifically at 8.5k-8.6k region.
why 8.6k region as bull target
- a lot more shorts are underwater
- liquidity left
- 0.38 fib not tested yet
why 8.6k might hold as resistance
- rsi overbought heavily
- parabolic short squeeze
- once liquidity runs out, trend reverses/pauses
As for plans:
watch volume and add shorts at 8.6k region with caution(no leverage). watch daily close. if SL at 10k and short target 4.7k -->45/15 ratio.
Note: a break of 10k at any point this year would indicate new all time high.
Note: a retest and break of lower low would indicate no new all time high until long range consolidation
Keep at it
@AresTrade
reversed