Bitcoin Market: Bulls Under Pressure as New Week Starts.
Hi traders, let's talk Bitcoin.
Bitcoin.
On the largest time frame, Bitcoin isn't looking particularly inclined to either bull or bear except for the volume which is showing some signs of weakening:
In general, a weakening volume accompanied by an increase in price is rather a bad sign and could lead to another dead-cat bounce as was the case back in April although, as of right now, there are no clear evidence that this move is oversold yet.
Most worrisome is the sudden surge in shorts as Bitcoin touched $7500 (edit: $7426 on Bitfinex to be exact), surge which hasn't been accompanied by any substantial movement on the long side.
On the daily time frame you can clearly see where the price was rejected and the shorts surged.
Resistance should be read "Support"
If immediate support were to break under the pressure we could see something like a head & shoulders pattern form, which in this case would signal that this move from $6500 to $7500 was indeed a dead-cat bounce.
Resistance should be read "Support"
However, if the bulls remain in control despite the pressure and managed to once again squeeze the shorts out of position then we could see the immediate support hold with the price auctioning up the current balance and testing $7600 by the end of the week.
My bias leans toward a correction this week.
Back to you traders, how do you see the market behave this week?
Until next time,
FØx.
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by FØx
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Great post and explanation.
Hoping that Shorts will get squeezed out !
Take care my dear.
Posted using Partiko iOS
Thanks @vlemon
Coins mentioned in post:
I think shorts are the only thing holding price up right now. If longs keep dropping and shorts keep rising, we may see a short squeeze that triggers an actual bull run.
That's a possibility, I lean towards a week of correction though.