Points that warn #Crypto could have a huge short squeeze.
Fibs and forecast/price estimate are mainly done just out of interest to see what happens. But there are various things to support a short squeeze may be setting up.
Let's look at some things we can see in a short squeeze in a developing/developed downtrend and how they relate to BTC.
Squeezes often a preluded by ranges. People given time to decide it's a big level. Think a low is in. Then think the breaking of this level is highly significant and will tell them the direction of the near term trend. Has to be time to establish important level.
Obvious devastating news. When a trend is turning usually there are reasons everyone knows it will continue. Like the El Salvador news at the top, the FTX news may mark the bottom.
Everyone needs to know the move is continuing. There needs to have been time to establish an important price. Mis forecasts of the low. Bug failure of implied important support and w/ news everyone will understand is bearish. It becomes a short squeeze by attracting shorts.
Our spike low comes in butterfly form. A known false breakout pattern which also has the properties of the last move always being the strongest, usually supported by news. Shorts before this bull pattern fails may be very untimely. Butterflies come at highs/lows, if working.
The idea of a Cryptocrash and it being inevitable this is going lower is deeply rooted now. But for us to not have some significant bounce around this level would be improbable. From very early on there were ways to define this 15K area as somewhere we could bounce/range.
I think BTC has made an important break and this break has increased the chance its in a multi yr bear market - but if it is, it can easily have 6 month + bull traps and in these types of traps stocks often double. Something volatile like BTC could easily do a few 100%.
I think there's speculative value long here with stops under the low to get out the way early if there's a run-away train - but more importantly, I think this is a risky area to be short w/ wide stops. If shorting, I'd think it's best to use tight stops.
The conditions for a short squeeze are all here. Terrible news in the headlines, a narrative established over time beat down in hours. A big exit from bulls and rush in of bears. All concurrently coming on levels a bounce always seemed probable.
Let's look at some things we can see in a short squeeze in a developing/developed downtrend and how they relate to BTC.
Squeezes often a preluded by ranges. People given time to decide it's a big level. Think a low is in. Then think the breaking of this level is highly significant and will tell them the direction of the near term trend. Has to be time to establish important level.
Obvious devastating news. When a trend is turning usually there are reasons everyone knows it will continue. Like the El Salvador news at the top, the FTX news may mark the bottom.
Everyone needs to know the move is continuing. There needs to have been time to establish an important price. Mis forecasts of the low. Bug failure of implied important support and w/ news everyone will understand is bearish. It becomes a short squeeze by attracting shorts.
Our spike low comes in butterfly form. A known false breakout pattern which also has the properties of the last move always being the strongest, usually supported by news. Shorts before this bull pattern fails may be very untimely. Butterflies come at highs/lows, if working.
The idea of a Cryptocrash and it being inevitable this is going lower is deeply rooted now. But for us to not have some significant bounce around this level would be improbable. From very early on there were ways to define this 15K area as somewhere we could bounce/range.
I think BTC has made an important break and this break has increased the chance its in a multi yr bear market - but if it is, it can easily have 6 month + bull traps and in these types of traps stocks often double. Something volatile like BTC could easily do a few 100%.
I think there's speculative value long here with stops under the low to get out the way early if there's a run-away train - but more importantly, I think this is a risky area to be short w/ wide stops. If shorting, I'd think it's best to use tight stops.
The conditions for a short squeeze are all here. Terrible news in the headlines, a narrative established over time beat down in hours. A big exit from bulls and rush in of bears. All concurrently coming on levels a bounce always seemed probable.
Order cancelled:
Reversed on positions.
