I myself get somewhat uneasied by using oscillators on the shorts chart but they can show a change in momentum and that is what I am checking to not be on the wrong side of a squeeze. The fundamentals of the oscillators are the same if you use them on price action or the shorts charts, especially if you are looking at longer time frames, a move that is about to end will start to exhibit bearish divergences.
There remains the possibility that the shorts are merely at resistance right now and they could break through that resistance and climb to higher levels. This area has seen some decent activity in the past, but nothing as clean and cut as say the support of BTCUSD at the 6k level. If the short action was correlated with price right now I would be worried (I am long BTCUSD right now) but I would be quite happy if the inverse relationship between BTCUSD and BTCUSDshorts continues if the shorts continue to climb. I am pretty confident that once we drop out of the bottom of the box in the chart below it will be deep.
- The MACD is possible process of setting a technical double top
- The MACD-AS (the histogram is the same but the signal line has been adjusted to give clearer signals by moving around zero) shows possible incoming signal-zero cross
- Hidden bearish divergence on the RSI
There remains the possibility that the shorts are merely at resistance right now and they could break through that resistance and climb to higher levels. This area has seen some decent activity in the past, but nothing as clean and cut as say the support of BTCUSD at the 6k level. If the short action was correlated with price right now I would be worried (I am long BTCUSD right now) but I would be quite happy if the inverse relationship between BTCUSD and BTCUSDshorts continues if the shorts continue to climb. I am pretty confident that once we drop out of the bottom of the box in the chart below it will be deep.
Comment:
Y'all can hit the play button in the OP and watch shorts plummet and get some context in the chart below. We are going parabolic and the shorts are the rocketfuel being squeezed out of the bears. I am not your financial adviser but I have been on the wrong size of a squeeze and mine didn't retrace in time. I've been where you have been and I am just saying I wouldn't be caught holding a second time.
And I promise every Floridian that you will all be rich... because we're gonna print some more money! Why didn't anybody ever think of this before?
~Nathan Explosion
~Nathan Explosion