The BTCUSD shorts are doing exactly what I said was likely to happen last night -- liquidating due to being so significantly overbought. One of the most significant things I notice on this daily chart is that the MACD high on April 11th is significantly higher than price's current high, however shorts are significantly lower and, while RSI is not as low as MACD, it is currently nearing that previous high on its own (which is in overbought territory). This is important to watch because if the shorts cannot grow greater than the aforementioned high before RSI records a higher high, then we will see hidden bearish divergence indicating a continued drop in shorts. That previous shorts high as the all time high as well. BTCUSD longs continue to grow however. The latter is a result of the inability of bears to continue pushing price down this morning and the potential recognition of the ascending triangle. Remember, price must drop below the $7360 low to confirm the double top. Many times, what appears to be a double top, especially at the beginning of a bullish movement upward, tends to result in sideways movement/consolidation before a renewed push higher. While I am not saying that will definitely happen in this case, it is important for traders to recognize this possibility as they develop their trading plans, especially with Bitcoin's current position within this consolidation.
Be sure to check out our other charts for the rest of the story.
Be sure to check out our other charts for the rest of the story.
