Corn_Reaper

Short squeeze to $4240 or $4520

Long
BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
**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:




Comment: We have a bullish rectangle forming on the 15 min chart targeting $4200.

Comments

Check the current prices now... Are you still convince with your analysis ? $4200 ?
Reply
Corn_Reaper cedricjt
@cedricjt, there wasn't enough buying volume to take it past $4135 unfortunately. Bears in full control for now.
Reply
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