BTC shorts losing momentum? Strong case for BTC bulls?
The BTCUSDSHORTS chart historically has been a good tool to look at Bitcoin's overall health in the cryptomarket. When BTC acts bearishly, BTCUSDSHORTS shorts go up. The inverse is also true - when BTC acts bullishly, BTCUSDSHORTS go down. Naturally shorts skyrocketed at the end of the great FOMO, with positive momentum lasting until April. However when BTC regained its positive momentum in early April, shorts fell again and bottomed out in May when BTC began another dump that lasted well into June (rounding teal line). What's interesting is mid-late June, shorts began forming a broadening top pattern - lower lows but higher highs - a case of indecision. Shorts fell out of this cone-like pattern, using its bottom trend line as resistance (A) before falling to complete its short-term measured move, the upper red line. It then had a false breakout, rising back into the broadening top (B), with price action coinciding inversely to BTC's second bottom @ 5782:
However the false breakout was short-lived, shorts dipped again on BTC's June 29th pump to the upside (C). What we have now it seems is a descending wedge, with two touch points on the top trend line as resistance, and three touch points on the bottom trend line as support on the daily BTCUSDSHORTS chart. I have the 4hr chart shown here for the sake of more candlestick patterns. This pattern coincides with the overall measured move of the broadening top pattern, which is down at the bottom red line (D), also coinciding with the area where shorts rounded out in mid-May. The daily shorts chart also shows bearish continuance on the RSI:
If BTCUSDSHORTS continues to act bearishly, hitting the measured move of the broadening top pattern while staying within the parameters of the descending wedge, BTC will continue to act the inverse, bullishly, no matter the small dips it may take along the way.
However the false breakout was short-lived, shorts dipped again on BTC's June 29th pump to the upside (C). What we have now it seems is a descending wedge, with two touch points on the top trend line as resistance, and three touch points on the bottom trend line as support on the daily BTCUSDSHORTS chart. I have the 4hr chart shown here for the sake of more candlestick patterns. This pattern coincides with the overall measured move of the broadening top pattern, which is down at the bottom red line (D), also coinciding with the area where shorts rounded out in mid-May. The daily shorts chart also shows bearish continuance on the RSI:
If BTCUSDSHORTS continues to act bearishly, hitting the measured move of the broadening top pattern while staying within the parameters of the descending wedge, BTC will continue to act the inverse, bullishly, no matter the small dips it may take along the way.