Bitcoin: Bearish, Everyone is Shorting #Bitcoin
Since the start of August, BTC shorts have been increasing and are nearing record levels. Will this drive us lower?
VPVR shows POC at about 8200 and a significant volume gap between 5600 and 4800, 4800-5000 is near term (1-2 month) bearish target.
A return to 8200 seems unlikely. The 200 & 350 daily MAs are strong resistance, as shown by the circled yellow rejections. Since crossing over price, the daily 350 MA has become resistance. Both of these MAs are above the point of control on this visible range that includes the previous two highs. Last week the weekly SAR also reversed to bearish.
Since the April short squeeze, BFX longs and shorts have been negatively correlated, with long positions dominating. Shorts are now nearing early April highs, where shorts got rekt and bulls nearly doubled the price of bitcoin. A short squeeze could test the 128 MA and 7700 but breaking beyond that seems unlikely right now.
Interesting time, we haven't seen shorts significantly lead longs after the 20k high. This set up will either see a strong short squeeze, likely up to the 128 MA or the bear power will carry out new 2018 lows, with a hard move likely ending/pausing at the previous high of 5k and the VPVR support level.
If prices exceed 6670 we could start to see a short squeeze or bullish momentum driving us up. A second breach of 6k would likely indicate the bearish move down to 5k. A move to 5k would likely have a devastating blow to alts. As mentioned in this idea
btc is the only thing worth holding during the later phase of this bear market.
News that could drive this news: BTC ETF being rejected in the second week of September
VPVR shows POC at about 8200 and a significant volume gap between 5600 and 4800, 4800-5000 is near term (1-2 month) bearish target.
A return to 8200 seems unlikely. The 200 & 350 daily MAs are strong resistance, as shown by the circled yellow rejections. Since crossing over price, the daily 350 MA has become resistance. Both of these MAs are above the point of control on this visible range that includes the previous two highs. Last week the weekly SAR also reversed to bearish.
Since the April short squeeze, BFX longs and shorts have been negatively correlated, with long positions dominating. Shorts are now nearing early April highs, where shorts got rekt and bulls nearly doubled the price of bitcoin. A short squeeze could test the 128 MA and 7700 but breaking beyond that seems unlikely right now.
Interesting time, we haven't seen shorts significantly lead longs after the 20k high. This set up will either see a strong short squeeze, likely up to the 128 MA or the bear power will carry out new 2018 lows, with a hard move likely ending/pausing at the previous high of 5k and the VPVR support level.
If prices exceed 6670 we could start to see a short squeeze or bullish momentum driving us up. A second breach of 6k would likely indicate the bearish move down to 5k. A move to 5k would likely have a devastating blow to alts. As mentioned in this idea
News that could drive this news: BTC ETF being rejected in the second week of September
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