BTC keeps dropping. Heavely. BUT!
As you can see as price keeps dropping, btc shorts positions keep increasing in a parabolic way. Why is it good for the smart trader?
We can see a bullis divergence on the 2H chart. is also very oversold. Therefore it is very likelyy to bounce from the bottom of our triangle. If we manage to close daily above our April-low then it is very likely to turn upward.
So back to the shorts: As price gonna rise, people start to close their short positions in order to cut losses. Because of the large amount of shorts, as people start to close this huge amount of short positions and add to their long positions price gonna rise even faster.
Bouncing from this key area would probably reinforce bulls and bring smart money in.
You can also notice that at the april-low at 6.4k short positions were rising very fast just like now. Then on the 12th of April you can see a huge dropp in short positions and at the same day a tremendous bullrun. I do expect the same short sqeeze this time as well.
The short squeeze in April:
You can see below on the weekly chart is also very low and seems bending upwards.
The best case scenario would be a reversed which would also confirm the reversal!
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***This is not a financial advice***
We are sitting on 0.382 fib. Still not clear where we going. If we dont break this level and stay above this, we gonna keep going down.