Shorts playing with fire in front of a gasoline ocean

You'd think the bitmex pump which was accelerated by a small pull back in the shorts would have been a warning shot to the late shorts but apparently not. Keep in mind... Small pull back in shorts caused a pump through the strong resistance of 6600-6800 up to just shy of $6900. Another factor is that the longs are no where near as high as they were back in April when we had the short squeeze and subsequent $1K move up in one hour. The longs help to offset the buy pressure caused when the shorts buy btc to close their positions. If BTC is pumped the shorts will be squeezed out of their positions and forced to close them by buying back the btc that they had planned on buying when the price dropped. This would create an immense amount of buy pressure similar to what we saw in April, only this time the selling pressure isn't there from the closing Long contracts to offset and slow the momentum. Additionally the fast up and down of the last price run in mid July leaves little resistance on the way back up to the previous swing high of around $8500.


I haven't seen anyone saying this, and maybe for a good reason that I don't yet understand, but I can see this potential short squeeze combined with the follow through momentum giving us a higher swing high and reversing the downtrend in a hurry. The majority, shown by the number of shorts, are clearly thinking prices are going down. In my opinion it is very unlikely that the market allows that many to win by prices going down until the shorts get rekt, and from these price levels if shorts get squeezed I can see a reversal of the downtrend as a viable possibility.