For those comparing last accumulation phase around (6.4k-7.5k) in early April where we ended squeezing shorts opened on support, this phase looks pretty different :
- Consolidation lower (bearish)
- Closed below previous swing low (6425) on big TFs (bearish)
- Shorts are decreasing (not bullish)
As I always say, the amount of longs or shorts opened doesn't matter. What matters is the comparison of the opening/closing of longs/shorts AND the price action.
If, for example, you have a bunch of shorts opening but price doesn't manage to break support, bears are exposed to a short squeeze (bears will be forced to close their shorts, thus buy back at market price, pushing the price even higher).
But if, for example, longs are opened and price goes up, this is ok because momentum is in favor of bulls and bears will have a hard time pushing price down.
Don't forget to hit the LIKE/FOLLOW button if you wanna support my work and show your approval to what I do !
- Consolidation lower (bearish)
- Closed below previous swing low (6425) on big TFs (bearish)
- Shorts are decreasing (not bullish)
As I always say, the amount of longs or shorts opened doesn't matter. What matters is the comparison of the opening/closing of longs/shorts AND the price action.
If, for example, you have a bunch of shorts opening but price doesn't manage to break support, bears are exposed to a short squeeze (bears will be forced to close their shorts, thus buy back at market price, pushing the price even higher).
But if, for example, longs are opened and price goes up, this is ok because momentum is in favor of bulls and bears will have a hard time pushing price down.
Don't forget to hit the LIKE/FOLLOW button if you wanna support my work and show your approval to what I do !