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. RSI 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 Stoch RSI is also very low and seems bending upwards.
The best case scenario would be a reversed hammer which would also confirm the reversal!
If you like this analysis please leave a like, it means a lot to me!
***This is not a financial advice***
Comment
⋅
Short positions are decreasing heavely. We are just having our last drop to near 6k. Bullrun is knocking the door.
Comment
⋅
He had a little pullback, but we have lack of volume. I closed my position with a 1% loss. It is likely to break 6k now.
Comment
⋅
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.
make sense to me... where do I press the "like" button?
xau327
⋅
I think we'll go down more first, and there's no TA or FA that guarantee that the "bullrun" will begin soon, this bear market can last longer than we can remain solvent.
KryptonuQ
⋅
@xau327, Of course, no guarantee. It is all about probability.
guigatrotta
⋅
The bullish divergence on RSI and the rising CMF clearly show the reversal aproaching. Altough I think whales will make one more drop towards 5,8k
KryptonuQ
⋅
@guigatrotta, 5.8k could be a likely scenario, I'll keep on updating.