Looking at the daily chart, BTC is printing a massive bear flag. In the past few weeks, sentiments have turned bearish again following the steep $1.2k drop from $7.4k. Traders in long positions were enjoying the slow gains and expected BTC to touch where the downward trend line and 200 MA met at around $7.8k. However, no one expected BTC to plow through supports at $6.8k and $6.4k so quickly. This has become a game of up and down range bound trading, and everyone is drawing out the same trend lines waiting for a clear signal. You can see this in the low volume trading during consolidation after big moves like the one we saw last week. There is a lot of risk in trading the middle range. The smart move is to buy the reaction lows and sell the reaction highs and place stop losses beyond the bound for any breakdowns in the falling wedge. Right now, there is still room on the daily RSI for the bear flag to become a reality. Selling pressure and chain stop losses could send BTC to low $5k's.
Overall, the volume profile in the last 6 months is showing a slight increase. And the reaction lows have been stabilizing at around low $6k's, indicating that the bulls are defending a possible floor. The longer BTC stays above $6.2k, the more likely BTC could see a double bottom reversal to retest the trend line and MA resistance. Many are also using the BTCUSDSHORTS as a contrarian indicator as it is hovering an ATH. I would imagine many traders believe another short squeeze is bound to happen. However, the confidence of shorts (10k worth of BTC) that opened on Sept 2nd leads me to believe otherwise. When everyone is thinking the same outcome, it often doesn't come true. There really is no reason that BTCUSDSHORTS cannot print another ATH well above the quantity back in April. After all, we are in a bear market with another possible SC in the short term.
Looking at trading view, a lot of speculators are still calling out $3k and $4k bottoms. I do not think the bulls will let BTC fall to such extremes. I do think that the gains made over the past month that have been wiped away in 3 days adds a lot of despair to the market. Enough to make a new low at $5k. A strong volume bounce at $5k, I think, will be enough to create a breakthrough in the falling wedge reversal pattern as the range contracts. It's just a waiting game at this point. The Falling Wedge is a bullish indicator, volume is growing, bulls are defending the price as I type this, and there's a lot of money sitting in tether ready for the next move.
Overall, the volume profile in the last 6 months is showing a slight increase. And the reaction lows have been stabilizing at around low $6k's, indicating that the bulls are defending a possible floor. The longer BTC stays above $6.2k, the more likely BTC could see a double bottom reversal to retest the trend line and MA resistance. Many are also using the BTCUSDSHORTS as a contrarian indicator as it is hovering an ATH. I would imagine many traders believe another short squeeze is bound to happen. However, the confidence of shorts (10k worth of BTC) that opened on Sept 2nd leads me to believe otherwise. When everyone is thinking the same outcome, it often doesn't come true. There really is no reason that BTCUSDSHORTS cannot print another ATH well above the quantity back in April. After all, we are in a bear market with another possible SC in the short term.
Looking at trading view, a lot of speculators are still calling out $3k and $4k bottoms. I do not think the bulls will let BTC fall to such extremes. I do think that the gains made over the past month that have been wiped away in 3 days adds a lot of despair to the market. Enough to make a new low at $5k. A strong volume bounce at $5k, I think, will be enough to create a breakthrough in the falling wedge reversal pattern as the range contracts. It's just a waiting game at this point. The Falling Wedge is a bullish indicator, volume is growing, bulls are defending the price as I type this, and there's a lot of money sitting in tether ready for the next move.