**I was just about to click publish when the short squeeze beat me to it. This was the analysis:
Bitcoin sentiment and the weekly chart is bearish, however, Bitfinex shorts are rising and have fallen out of and retested a rising wedge which means we might have a short squeeze from here in the short term and a bounce to retest that pennant as resistance at around $4240.
The larger trendline resistance since $6k is now holding as support and we also have bullish divergence on the 4H money flow indicator (which includes both price and volume) so looking for a bounce since stochastic is also oversold.
I think btcusd will be testing new lows if we drop from $4240, which coincides with EMA50 as resistance but if we do manage to find support above $4240, I don't think we'll get a close above $4520, which coincides with our EMA100 resistance unless buying volume returns. You'll notice that buying volume has been gradually dropping after every bearish volume spike. We may find support at around $4150 if we do get to $4500 but better to see what happens closer to then.
This is the btcusdshorts rising wedge I was referring to:
Good luck and happy trading!
previous post:
Bitcoin sentiment and the weekly chart is bearish, however, Bitfinex shorts are rising and have fallen out of and retested a rising wedge which means we might have a short squeeze from here in the short term and a bounce to retest that pennant as resistance at around $4240.
The larger trendline resistance since $6k is now holding as support and we also have bullish divergence on the 4H money flow indicator (which includes both price and volume) so looking for a bounce since stochastic is also oversold.
I think btcusd will be testing new lows if we drop from $4240, which coincides with EMA50 as resistance but if we do manage to find support above $4240, I don't think we'll get a close above $4520, which coincides with our EMA100 resistance unless buying volume returns. You'll notice that buying volume has been gradually dropping after every bearish volume spike. We may find support at around $4150 if we do get to $4500 but better to see what happens closer to then.
This is the btcusdshorts rising wedge I was referring to:
Good luck and happy trading!
previous post:
Comment:
We have a bullish rectangle forming on the 15 min chart targeting $4200.
