Bitcoin (BTCUSD); Shorts Increasing as apex approaching. Squeeze potential but confirmation still required

As I mentioned in a post last week, the only pattern of major importance in Bitcoin right now is the descending triangle that as been forming since February of this year. As can be seen below, price is pushing ever closer to the apex of the triangle which tells me two things. Firstly, attempting short term trades is becoming increasingly difficult since price has less room to move, this likely accounts for some of the decreased volume seen of late. Secondly, the closer we get to the apex, the more imminent is a breakout.

Breakouts from triangle's typically result in strong directional movements and whilst this pattern is usually described as bearish, as with any pattern, price can resolve in either direction. No pattern is absolute.

If it breaks to the downside with a close below 5,755 acting as confirmation, the target is ~3k. If it can break above the upper boundary of the declining trend line, I see resistance at the 11,500 level. Higher targets can't be considered unless price moves above the resistance zone, the top of which is around the 13,000 level.

What catches my eye right now though is the increasing level of shorts as reported by Bitfinex. Excessive levels of short interest can often be a contrary indicator and two of these extreme readings occurred at the same time price bottomed in August and September. IF price were to break to the upside of the triangle, these shorts would be caught offside and be scrambling to cover, setting up a potential short squeeze.

Let's wait for confirmation of a break, it shouldn't be too far away.