Soon.
We're at W1 resistance and a D1 double top has already formed. D1 double top was confirmed when the D1 candle closed below the 13 MA. Furthermore, we have RSI divergence
Potential scenarios:
Scenario A) Prices could fall anytime
Scenario B) We could also see a short squeeze - prices stop hunting above liquidity.
Scenario C) The above could happen, but might be stimulated by the ETF news on Jan 10 2024
Why do short squeezes happen?
Imagine you wanna sell a metric fucktonne of BTC. How will you get your orders filled at a reasonable price? If you just market sell, you're going to push prices down.
So instead, you 'buy to sell' (as it's known in institutional banks). You push up price above the liquidity. There are 2 types of buy orders in this liquidity pool
1) Bullish breakout traders
2) Short sellers who have already entered and have set a stop loss above the structure high (this stop loss is equivalent o a buy order)
So in this scenario where you are a whale, price has breached 45k and tapped into a pool of liquidity with lots of buy orders. You can now sell your big bag and get in at amazing prices.
Price then shoots down.
We're at W1 resistance and a D1 double top has already formed. D1 double top was confirmed when the D1 candle closed below the 13 MA. Furthermore, we have RSI divergence
Potential scenarios:
Scenario A) Prices could fall anytime
Scenario B) We could also see a short squeeze - prices stop hunting above liquidity.
Scenario C) The above could happen, but might be stimulated by the ETF news on Jan 10 2024
Why do short squeezes happen?
Imagine you wanna sell a metric fucktonne of BTC. How will you get your orders filled at a reasonable price? If you just market sell, you're going to push prices down.
So instead, you 'buy to sell' (as it's known in institutional banks). You push up price above the liquidity. There are 2 types of buy orders in this liquidity pool
1) Bullish breakout traders
2) Short sellers who have already entered and have set a stop loss above the structure high (this stop loss is equivalent o a buy order)
So in this scenario where you are a whale, price has breached 45k and tapped into a pool of liquidity with lots of buy orders. You can now sell your big bag and get in at amazing prices.
Price then shoots down.