This chart I just posted compares BTC to BTCUSDShorts . It's self-explanatory really, we are at all-time high short exposure. More people have been short now than almost ever before. You better believe that any new person that is short is very nervous right now if we break higher. So, if we do break higher, how high could we go?
1st Stop 7.2k - We are already really close to this
2nd stop 7.5k - Trendline and support point
3rd stop 8.5k-9.5k area - Trendline and major resistance.
For this final area to break, I think will take some time and sideways movement. Hard to say exactly how it would break this at this juncture
After that, we go to 11k area.
If we break this recent 7.2k high, I think we are going to test 7.5k rather quickly. If you are short you gotta be wondering, while everyone is calling for a strong bounce after it tests down to 4k. Is it worth holding on that long risking a break up first, resulting in you either get margin called or losing money? I would be covering my position right now personally, but that's just me.
Oh, if my analysis helped you please smash that like button and let me know. thanks.