Hello traders,
Let's look at Bitcoin price action in somewhat different perspective: Bitcoin short.
A "short" trade is initiated by selling with the intent to buy the stock back at lower price and realize a profit.
Before we get into the current situation, I want you to pay attention in yellow rectangle region. We can see that while Bitcoin short positions are increasing, we see that price remains relatively flat. This means that Bears are trying to sell the Bitcoin, hoping to stock back at the lower price. However, because bulls defend that region without driving the price down, people who shorted people were forced to stop shorting their position.
And I believe that similar situation is currently happening. It is evident that shorting position is reaching all time high, but the price is not reaching to all time low. This tells me that bears are starting to get tired of shorting, and we may see trend reversal very soon just as we saw back in april. The shorting position is in oversold region for a quite long time, and every time we see they are in this oversold region, we see a trend reversal.
However my bullish view is invalidated if Bitcoin goes below $6-$6.1K in next 24 hours.
Happy trading!!
Let's look at Bitcoin price action in somewhat different perspective: Bitcoin short.
A "short" trade is initiated by selling with the intent to buy the stock back at lower price and realize a profit.
Before we get into the current situation, I want you to pay attention in yellow rectangle region. We can see that while Bitcoin short positions are increasing, we see that price remains relatively flat. This means that Bears are trying to sell the Bitcoin, hoping to stock back at the lower price. However, because bulls defend that region without driving the price down, people who shorted people were forced to stop shorting their position.
And I believe that similar situation is currently happening. It is evident that shorting position is reaching all time high, but the price is not reaching to all time low. This tells me that bears are starting to get tired of shorting, and we may see trend reversal very soon just as we saw back in april. The shorting position is in oversold region for a quite long time, and every time we see they are in this oversold region, we see a trend reversal.
However my bullish view is invalidated if Bitcoin goes below $6-$6.1K in next 24 hours.
Happy trading!!
Note
Bulls definitely proving themselves by testing $6500 again. I am feeling positive on market sentiment now. There is potential inverse head and shoulders pattern in 15 mins chart, and Bitcoin will test $6500 again in next few hours. I am currently waiting for the orange trendline breakout. My bullish view will be invalidated if Bitcoin goes below $6388.
Note
As expected, Bitcoin completed its inverse head and shoulders pattern. Also, have a look at my possible scenario. Ideally we want to see inverse H&S breakout and find support at 6611, but most likely we will see wavy uptrend up to $6611 again.
If Bitcoin get rejected at $6500 again, then I think it is game over for Bitcoin and we will see huge, HUGE, selling pressure.
Trade closed: target reached
Touch down!!!! Guess who predicted this?
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.